PURE Bioscience (NASDAQ:PURE), creators of the patented silver dihydrogen citrate (SDC) antimicrobial, announced today that it has sold $2.376 million of its common stock in an unregistered private placement solely to non-affiliated accredited investors.
Under the terms of purchase agreements, PURE sold 1,080,000 newly issued shares of its restricted common stock at a price of $2.20 per share. The purchase price per share represents an approximate 13% discount to PURE's average closing bid price for the trailing five days ending October 25, 2010. The shares sold represent approximately three percent of the outstanding common stock. No warrants were issued in the transaction, which was completed directly by the Company without an underwriter or placement agent. After expenses, the net proceeds to PURE are expected to be approximately $2.371 million. The net proceeds from the offering will be used for working capital.