|
FORM 10-Q
|
x
|
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended December 31, 2013
|
||
OR
|
||
¨
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from to
|
|
Commission file number: 000-51563
|
|
ANTRIABIO, INC
|
(Exact Name of Registrant as Specified in its Charter)
|
Delaware
|
|
27-3440894
|
(State of other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
890 Santa Cruz Avenue
, Menlo Park CA
|
|
94025
|
(Address of Principal Executive Offices)
|
|
(Zip Code)
|
(650)-241-9330
|
(Registrant’s Telephone Number, including Area Code)
|
|
(Former name, former address and former fiscal year, if changed since last report)
|
|
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
x
Yes
¨
No
|
Indicate by check mark whether the Registrant is
¨
a large accelerated filer,
¨
an accelerated file,
¨
a non-accelerated filer, or
x
a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act)
|
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)
|
¨
Yes
x
No
|
Number of shares of issuer’s common stock outstanding as of February 12, 2014:
40,000,000
|
i | ||
|
|
·
|
projected operating or financial results, including anticipated cash flows used in operations;
|
|
|
|
|
·
|
expectations regarding capital expenditures, research and development expense and other payments;
|
|
|
|
|
·
|
our beliefs and assumptions relating to our liquidity position, including our ability to obtain additional financing;
|
|
|
|
|
·
|
our ability to obtain regulatory approvals for our pharmaceutical drugs and diagnostics; and
|
|
|
|
|
·
|
our future dependence on third party manufacturers or strategic partners to manufacture any of our pharmaceutical drugs and diagnostics that receive regulatory approval, and our ability to identify strategic partners and enter into license, co-development, collaboration or similar arrangements.
|
|
·
|
the loss of key management personnel or sponsored research partners on whom we depend;
|
|
|
|
|
·
|
the progress and results of clinical trials for our product candidates;
|
|
|
|
|
·
|
our ability to navigate the regulatory approval process in the U.S. and other countries, and our success in obtaining required regulatory approvals for our product candidates;
|
|
|
|
|
·
|
commercial developments for products that compete with our product candidates;
|
|
|
|
|
·
|
the actual and perceived effectiveness of our product candidates, and how those product candidates compare to competitive products;
|
|
|
|
|
·
|
the strength of our intellectual property protection, and our success in avoiding infringing the intellectual property rights of others;
|
|
|
|
|
·
|
adverse developments in our research and development activities;
|
|
|
|
|
·
|
potential liability if our product candidates cause illness, injury or death, or adverse publicity from any such events;
|
|
|
|
|
·
|
our ability to operate our business efficiently, manage capital expenditures and costs (including general and administrative expenses) and obtain financing when required;
|
|
|
|
|
·
|
our expectations with respect to our acquisition activity.
|
1 | ||
|
|
|
December 31, 2013
|
|
June 30, 2013
|
|
||
|
|
(Unaudited)
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
Cash
|
|
$
|
1,144,792
|
|
$
|
527
|
|
Note receivable - related party
|
|
|
163,829
|
|
|
163,829
|
|
Interest receivable - related party
|
|
|
10,174
|
|
|
3,341
|
|
Inventory
|
|
|
223,000
|
|
|
223,000
|
|
Due from related party
|
|
|
165,023
|
|
|
183,346
|
|
Deferred financing, net
|
|
|
138,393
|
|
|
146,037
|
|
Other current assets
|
|
|
13,969
|
|
|
95,469
|
|
Total current assets
|
|
|
1,859,180
|
|
|
815,549
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
Fixed assets, idle
|
|
|
275,717
|
|
|
275,717
|
|
Intangibile assets, net
|
|
|
10,933
|
|
|
12,705
|
|
Total non-current assets
|
|
|
286,650
|
|
|
288,422
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
2,145,830
|
|
$
|
1,103,971
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Deficit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
$
|
477,496
|
|
$
|
188,346
|
|
Accounts payable and accrued expenses - related party
|
|
|
1,068,206
|
|
|
807,001
|
|
Convertible notes payable
|
|
|
3,497,136
|
|
|
3,732,500
|
|
Note payable - related party
|
|
|
234,700
|
|
|
-
|
|
Interest payable
|
|
|
601,459
|
|
|
380,575
|
|
Warrant derivative liability
|
|
|
663,582
|
|
|
157,761
|
|
Total current liabilities
|
|
|
6,542,579
|
|
|
5,266,183
|
|
|
|
|
|
|
|
|
|
Commitments and Contingencies (Note 10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' deficit:
|
|
|
|
|
|
|
|
Preferred stock, $0.001 par value; 20,000,000 shares authorized;
none issued and outstanding |
|
|
-
|
|
|
-
|
|
Common stock, $0.001 par value, 200,000,000
shares authorized; 40,000,000 shares issued and outstanding, December 31, 2013 and June 30, 2013 |
|
|
40,000
|
|
|
40,000
|
|
Additional paid-in capital
|
|
|
6,217,894
|
|
|
3,814,258
|
|
Deficit accumulated during the development stage
|
|
|
(10,654,643)
|
|
|
(8,016,470)
|
|
Total stockholders' deficit
|
|
|
(4,396,749)
|
|
|
(4,162,212)
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders' Deficit
|
|
$
|
2,145,830
|
|
$
|
1,103,971
|
|
2 | ||
|
|
|
Three Months
|
|
Six Months
|
|
From March 24, 2010
|
|
|||||||||
|
|
Ended December 31,
|
|
Ended December 31,
|
|
(Inception) to
|
|
|||||||||
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
December 31, 2013
|
|
|||||
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
(Unaudited)
|
|
||||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consulting fees
|
|
$
|
80,751
|
|
$
|
110,514
|
|
$
|
162,025
|
|
$
|
228,155
|
|
$
|
1,062,529
|
|
Compensation and benefits
|
|
|
411,879
|
|
|
193,306
|
|
|
770,332
|
|
|
393,872
|
|
|
5,406,209
|
|
Research and development
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,494
|
|
Insurance
|
|
|
44,264
|
|
|
4,375
|
|
|
89,077
|
|
|
8,616
|
|
|
207,947
|
|
Professional fees
|
|
|
76,968
|
|
|
138,471
|
|
|
242,617
|
|
|
292,879
|
|
|
1,045,560
|
|
Rent
|
|
|
25,887
|
|
|
18,531
|
|
|
38,749
|
|
|
34,323
|
|
|
170,701
|
|
Travel
|
|
|
1,941
|
|
|
11,630
|
|
|
7,396
|
|
|
55,211
|
|
|
246,529
|
|
Amortization
|
|
|
886
|
|
|
-
|
|
|
1,772
|
|
|
-
|
|
|
2,067
|
|
General and administrative
|
|
|
7,542
|
|
|
23,238
|
|
|
39,053
|
|
|
29,892
|
|
|
172,121
|
|
Total operating expenses
|
|
|
650,118
|
|
|
500,065
|
|
|
1,351,021
|
|
|
1,042,948
|
|
|
8,317,157
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
(650,118)
|
|
|
(500,065)
|
|
|
(1,351,021)
|
|
|
(1,042,948)
|
|
|
(8,317,157)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
3,379
|
|
|
71,972
|
|
|
6,833
|
|
|
88,902
|
|
|
144,424
|
|
Interest expense
|
|
|
(623,347)
|
|
|
(109,421)
|
|
|
(788,164)
|
|
|
(214,319)
|
|
|
(1,818,328)
|
|
Derivative expense
|
|
|
(548,556)
|
|
|
-
|
|
|
(505,821)
|
|
|
-
|
|
|
(663,582)
|
|
Total other income (expense)
|
|
|
(1,168,524)
|
|
|
(37,449)
|
|
|
(1,287,152)
|
|
|
(125,417)
|
|
|
(2,337,486)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(1,818,642)
|
|
$
|
(537,514)
|
|
$
|
(2,638,173)
|
|
$
|
(1,168,365)
|
|
$
|
(10,654,643)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share - basic and diluted
|
|
$
|
(0.05)
|
|
$
|
(0.02)
|
|
$
|
(0.07)
|
|
$
|
(0.03)
|
|
$
|
(0.29)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
common shares outstanding - basic and diluted |
|
|
40,000,000
|
|
|
35,284,000
|
|
|
40,000,000
|
|
|
35,284,000
|
|
|
36,415,569
|
|
3 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deficit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
|
|
Additional
|
|
During the
|
|
Total
|
|
||||
|
|
Common Stock, $0.001 Par Value
|
|
Stock
|
|
Paid-in
|
|
Development
|
|
Stockholders'
|
|
||||||||
|
|
Shares
|
|
Amount
|
|
Subscribed
|
|
Capital
|
|
Stage
|
|
Equity (Deficit)
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 10, 2010 (Inception)
|
|
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
100
|
|
$
|
-
|
|
$
|
100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stock
|
|
|
35,284,000
|
|
|
35,284
|
|
|
(35,284)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the period from March 24, 2010 (Inception) to June 30, 2011
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(505,630)
|
|
|
(505,630)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2011
|
|
|
35,284,000
|
|
|
35,284
|
|
|
(35,284)
|
|
|
100
|
|
|
(505,630)
|
|
|
(505,530)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the year ended June 30, 2012
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(783,383)
|
|
|
(783,383)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2012
|
|
|
35,284,000
|
|
|
35,284
|
|
|
(35,284)
|
|
|
100
|
|
|
(1,289,013)
|
|
|
(1,288,913)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,687,502
|
|
|
-
|
|
|
3,687,502
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrant expense
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
191,126
|
|
|
-
|
|
|
191,126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conversion of equity in reverse merger acquisition
|
|
|
4,716,000
|
|
|
4,716
|
|
|
35,284
|
|
|
(64,470)
|
|
|
-
|
|
|
(24,470)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the year ended June 30, 2013
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(6,727,457)
|
|
|
(6,727,457)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2013
|
|
|
40,000,000
|
|
|
40,000
|
|
|
-
|
|
|
3,814,258
|
|
|
(8,016,470)
|
|
|
(4,162,212)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation (Unaudited)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
330,636
|
|
|
-
|
|
|
330,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beneficial conversion feature (Unaudited)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,883,708
|
|
|
-
|
|
|
1,883,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrant expense (Unaudited)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
189,292
|
|
|
-
|
|
|
189,292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the six months ended December 31, 2013 (Unaudited)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(2,638,173)
|
|
|
(2,638,173)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2013 (Unaudited)
|
|
|
40,000,000
|
|
$
|
40,000
|
|
$
|
-
|
|
$
|
6,217,894
|
|
$
|
(10,654,643)
|
|
$
|
(4,396,749)
|
|
4 | ||
|
|
|
Six Months
|
|
From March 24, 2010
|
|
|||||
|
|
Ended December 31,
|
|
(Inception) to
|
|
|||||
|
|
2013
|
|
2012
|
|
December 31, 2013
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
$
|
(2,638,173)
|
|
$
|
(1,168,365)
|
|
$
|
(10,654,643)
|
|
Amortization of notes payable discount
|
|
|
417,636
|
|
|
17,029
|
|
|
705,136
|
|
Amortization of deferred financing costs
|
|
|
149,644
|
|
|
87,429
|
|
|
511,733
|
|
Amortization of intangible asset
|
|
|
1,772
|
|
|
-
|
|
|
2,067
|
|
Stock-based compensation expense
|
|
|
330,636
|
|
|
-
|
|
|
4,018,138
|
|
Derivative expense
|
|
|
505,821
|
|
|
-
|
|
|
663,582
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in other assets
|
|
|
81,500
|
|
|
(120,000)
|
|
|
(88,969)
|
|
(Increase) decrease in due from related parties
|
|
|
18,323
|
|
|
(15,868)
|
|
|
(188,286)
|
|
Increase in accounts payable and accrued expenses
|
|
|
289,150
|
|
|
346,366
|
|
|
478,529
|
|
Increase in accounts payable and accrued expenses - related party
|
|
|
261,205
|
|
|
-
|
|
|
1,066,066
|
|
Increase in interest payable
|
|
|
220,884
|
|
|
109,861
|
|
|
601,459
|
|
Net Cash Used In Operating Activities
|
|
|
(361,602)
|
|
|
(743,548)
|
|
|
(2,885,188)
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Purchase of fixed assets
|
|
|
-
|
|
|
-
|
|
|
(11,717)
|
|
Acquisition of assets
|
|
|
-
|
|
|
-
|
|
|
(500,000)
|
|
(Increase) decrease in interest receivable - related party
|
|
|
(6,833)
|
|
|
723
|
|
|
(10,174)
|
|
Issuance of note receivable - related party
|
|
|
-
|
|
|
(283,128)
|
|
|
(1,138,057)
|
|
Payments on note receivable - related party
|
|
|
-
|
|
|
23,378
|
|
|
974,228
|
|
Net Cash Used In Investing Activities
|
|
|
(6,833)
|
|
|
(259,027)
|
|
|
(685,720)
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Payments of financing costs
|
|
|
(142,000)
|
|
|
(145,000)
|
|
|
(384,000)
|
|
Proceeds from issuance of convertible notes payable
|
|
|
1,420,000
|
|
|
1,450,000
|
|
|
4,900,500
|
|
Repayments of convertible notes payable
|
|
|
-
|
|
|
-
|
|
|
(35,500)
|
|
Proceeds from issuance of notes payable - related party
|
|
|
234,700
|
|
|
-
|
|
|
234,700
|
|
Net Cash Provided By Financing Activities
|
|
|
1,512,700
|
|
|
1,305,000
|
|
|
4,715,700
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash
|
|
|
1,144,265
|
|
|
302,425
|
|
|
1,144,792
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash - Beginning of Period
|
|
|
527
|
|
|
25,878
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash - End of Period
|
|
$
|
1,144,792
|
|
$
|
328,303
|
|
$
|
1,144,792
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTARY CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
Cash Paid During the Period for:
|
|
|
|
|
|
|
|
|
|
|
Taxes
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
Interest
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Cash Transactions:
|
|
|
|
|
|
|
|
|
|
|
Assumption of accrued expenses in reverse merger
|
|
$
|
-
|
|
$
|
-
|
|
$
|
1,207
|
|
Assumption of due to/from related party in reverse merger
|
|
$
|
-
|
|
$
|
-
|
|
$
|
23,263
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets acquired in asset acquisition:
|
|
|
|
|
|
|
|
|
|
|
Inventory
|
|
$
|
-
|
|
$
|
-
|
|
$
|
223,000
|
|
Fixed assets
|
|
|
-
|
|
|
-
|
|
|
264,000
|
|
Intangible assets
|
|
|
-
|
|
|
-
|
|
|
13,000
|
|
Cash paid for asset acquisition
|
|
$
|
-
|
|
$
|
-
|
|
$
|
500,000
|
|
5 | ||
|
6 | ||
|
7 | ||
|
|
·
|
Level 1: Quoted prices for identical assets and liabilities in active markets;
|
|
·
|
Level 2: Quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and
|
|
·
|
Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
|
Balance as of June 30, 2013
|
|
$
|
(157,761)
|
|
Total unrealized gains (losses):
|
|
|
|
|
Included in earnings
|
|
|
(505,821)
|
|
Balance as of December 31, 2013
|
|
$
|
(663,582)
|
|
8 | ||
|
Material inventory
|
|
$
|
223,000
|
|
Fixed assets
|
|
|
264,000
|
|
Intangible assets
|
|
|
13,000
|
|
|
|
$
|
500,000
|
|
|
⋅
|
Two million dollars ($2,000,000) related to the initiation of Phase 2b clinical studies for a multi-day injectable insulin, payable 30 days after the first dosing of a patient in a formal Phase 2b clinical study;
|
|
⋅
|
Two million dollars ($2,000,000) to be paid within 30 days after the exclusive license of the multi-day injectable insulin in the United States to a commercial pharmaceutical company.
|
|
⋅
|
Five million dollars ($5,000,000) after the initiation of Phase 3 clinical studies for the multi-day injectable insulin by the Company or a licensee of the Company, payable 30 days after the first dosing of a patient in a formal Phase 3 clinical study.
|
|
⋅
|
Ten million dollars ($10,000,000) upon the approval by the FDA or EMEA to allow the marketing and sales of the multi-day injectable insulin by the Company or a licensee of the Company, payable 30 days after the receipt of the approval letter or notice from the FDA or EMEA.
|
|
⋅
|
Twenty five million dollars ($25,000,000) if the twelve month cumulative sales of the multi-day injectable insulin by the Company or a licensee of the Company reaches five hundred million dollars ($500,000,000) in any one given twelve consecutive month period, so long as such period occurs during the life of the patents included in the purchased assets, payable 90 days after the twelfth month in which sales equaled or exceeded five hundred million dollars.
|
9 | ||
|
10 | ||
|
11 | ||
|
|
|
December 31, 2013
|
|
June 30, 2013
|
|
||
|
|
|
|
|
|
|
|
2010 Notes (A)
|
|
$
|
562,500
|
|
$
|
562,500
|
|
2011 Notes (B)
|
|
|
645,000
|
|
|
645,000
|
|
2011 Notes (C)
|
|
|
1,700,000
|
|
|
1,700,000
|
|
2012 Notes (D)
|
|
|
825,000
|
|
|
825,000
|
|
2013 Notes (E)
|
|
|
1,420,000
|
|
|
-
|
|
|
|
|
5,152,500
|
|
|
3,732,500
|
|
Discount on 2013 Notes (E)
|
|
|
(1,655,364)
|
|
|
-
|
|
|
|
$
|
3,497,136
|
|
$
|
3,732,500
|
|
12 | ||
|
|
|
|
|
|
Weighted
|
|
Weighted Average
|
|
||
|
|
Number of
|
|
Average
|
|
Remaining
|
|
|||
|
|
Options
|
|
Exercise Price
|
|
Contractual Life
|
|
|||
Outstanding, June 30, 2012
|
|
|
-
|
|
$
|
-
|
|
|
-
|
|
Granted
|
|
|
9,050,000
|
|
$
|
0.75
|
|
|
|
|
Outstanding, June 30, 2013
|
|
|
9,050,000
|
|
$
|
0.75
|
|
|
4.6
|
|
Outstanding, December 31, 2013
|
|
|
9,050,000
|
|
$
|
0.75
|
|
|
4.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercisable at December 31, 2013
|
|
|
6,768,058
|
|
$
|
0.75
|
|
|
4.1
|
|
13 | ||
|
|
|
|
|
|
Weighted
|
|
Weighted Average
|
|
||
|
|
Number of
|
|
Average
|
|
Remaining
|
|
|||
|
|
Warrants
|
|
Exercise Price
|
|
Contractual Life
|
|
|||
Outstanding, June 30, 2012
|
|
|
-
|
|
$
|
-
|
|
|
-
|
|
Warrants issued to placement agents
|
|
|
248,542
|
|
$
|
0.33
|
|
|
|
|
Warrants issued to placement agent
|
|
|
1,400,000
|
|
$
|
0.25
|
|
|
|
|
Warrants issued to placement agent
|
|
|
110,000
|
|
$
|
0.85
|
|
|
|
|
Outstanding, June 30, 2013
|
|
|
1,758,542
|
|
$
|
0.30
|
|
|
4.1
|
|
Warrants issued to note holders
|
|
|
710,000
|
|
$
|
0.32
|
|
|
|
|
Outstanding, December 31, 2013
|
|
|
2,468,542
|
|
$
|
0.30
|
|
|
3.4
|
|
14 | ||
|
Expected volatility
|
|
97% - 111%
|
|
Risk free interest rate
|
|
0.78% - 1.41%
|
|
Warrant term (years)
|
|
3 - 5
|
|
Dividend yield
|
|
0%
|
|
15 | ||
|
16 | ||
|
17 | ||
|
18 | ||
|
19 | ||
|
20 | ||
|
Exhibit Number
|
Description of Exhibits
|
|
|
10.1
|
Placement Agent Agreement dated December 13, 2013*
|
|
|
10.2
|
Form of Letter to Convertible Note Holders dated December 16, 2013*
|
|
|
31.1
|
Certification of Chief Executive Officer and Chief Financial Officer as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
|
|
|
32.2
|
Certification of Chief Executive Officer and Chief Financial Officer as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
|
|
|
101
|
The following materials from our Quarterly Report on Form 10-Q for the quarter ended December 31, 2013 formatted in XBRL (eXtensible Business Reporting Language): (i) Balance Sheet, (ii) Statement of Operations, (iii) Statements of Cash Flows, (iv) Statements of Stockholders Equity and (v) related notes to these financial statements, tagged as blocks of text.
|
*Filed herewith
|
21 | ||
|
|
|
ANTRIABIO, INC.
|
|
|
|
|
By:
|
/s/ Nevan Elam
|
|
|
Nevan Elam
|
|
|
Chief Executive Officer
|
|
|
(Principal Executive Officer
|
|
|
and Principal Financial and
Accounting Officer)
|
|
|
|
|
Date:
|
February 13
, 2014
|
22 | ||
|
PLACEMENT AGENT AGREEMENT
(December 13, 2013)
This PLACEMENT AGENT AGREEMENT is made by and between ANTRIABIO, INC. , a Delaware corporation (the “ Company ”), and PAULSON INVESTMENT COMPANY, INC. , an Oregon corporation (“ Placement Agent ”), as of the date first above written.
WITNESSETH
WHEREAS , in reliance upon the representations, warranties, terms and conditions hereinafter set forth, the Placement Agent will use its best efforts to: (i) privately place up to $3,500,000 of the Company’s 8% unsecured convertible notes (each a “ Convertible Note ” and collectively, the “ Convertible Notes ”) in a bridge financing (the “ Bridge ”); and (ii) privately place shares of the Company’s common stock in a PIPE transaction (the “ Financing ”) as described in and pursuant to the terms and conditions described in the term sheet attached hereto (the “ Term Sheet ”) as Exhibit A ;
WHEREAS , the terms of the Financing and the Bridge will be more fully described in the definitive documents to be prepared by Placement Agent and the Company with the assistance of their respective counsel; and
WHEREAS , the Company desires to engage the Placement Agent and the Placement Agent desires to be engaged as the Company’s placement agent in connection with the Offering (as defined below).
NOW, THEREFORE , in consideration of the premises and the respective promises hereinafter set forth, the Company and the Placement Agent hereby agree as follows:
1. Services .
(a) Placement Agent shall offer participation in the Financing and the Bridge (collectively the “ Offering ”) to its clients and other persons with whom Placement Agent or the Company or any of their respective officers, directors, employees or affiliates has a pre-existing business relationship and which Placement Agent reasonably believes are “accredited investors” as defined by Regulation D promulgated under the Securities Act of 1933, as amended (the “ Securities Act ”). Any such potential investor in the Offering that is introduced to the Offering by Placement Agent shall be considered a qualified investor (collectively, the “ Qualified Investors ”).
1 |
(b) Placement Agent shall be responsible for (i) the initial printing, binding and distribution (Placement Agent shall not be required to print hard copies, but may use electronic documents for distribution) to the Qualified Investors of the Company’s confidential private placement memorandum or other offering documents (the “ Memorandum ”) (which shall be created by the Company, with the assistance of the Placement Agent, and shall include a brief summary of the Company and its business, current capitalization table, current financial statements and certain future financial projections of the Company, as well as the relevant Financing documents (the “ Transaction Documents ”)) and related investment materials to be used in connection with the Financing, (ii) organizing, obtaining facilities for, and conducting one or more investor presentations and (iii) providing such other services reasonably related to serving as placement agent for the Company in connection with the Financing. The Company shall make members of management and other employees available to Placement Agent as Placement Agent shall reasonably request for purposes of satisfying Placement Agent’s due diligence requirements and consummating the Financing, the Company shall also make key management members available to attend a reasonable number of investor presentation, as determined by the Placement Agent, and shall commit such time and other resources as are reasonably necessary or appropriate to secure the reasonable and timely success of the Offering. The Company shall cooperate with Placement Agent in connection with, and shall make available to Placement Agent such documents and other information as Placement Agent shall reasonably request in order to satisfy its due diligence requirements.
(c) Placement Agent acknowledges that (i) the Company may determine, in its sole discretion, whether to accept an offer of subscription to the Financing or the Bridge by a Qualified Investor and (ii) the Company is not obligated to compensate Placement Agent for such offered subscriptions to the Company that the Company does not accept. Notwithstanding the foregoing, unless the Company has a specific objection to any particular Qualified Investor being an equity investor or creditor of the Company (for example, the investor competes with the Company, is known to be disreputable or dishonest, is affiliated with a competitor of the Company or for other, legitimate investor-specific reasons), the Company shall accept such offer of subscription from such Qualified Investors, as described in the Term Sheet.
2. Compensation .
(a) Compensation for the Bridge . The Company shall, at each closing of the Bridge, as compensation for the services provided by Placement Agent hereunder pay Placement Agent a Bridge Cash Fee (as defined below). The Company will also pay a Bridge Conversion Fee (as defined below) upon each conversion of all or part of the Bridge, whether such conversion was voluntary, or automatic.
(i) The “ Bridge Cash Fee ” shall equal 10.0% of the aggregate principal amount of each Convertible Note invested in by Placement Agent and its affiliates and/or any Qualified Investor in the Bridge, including gross cash proceeds invested in the Bridge.
2 |
(ii) The “ Bridge Conversion Fee ” Upon the conversion of all or part of the Bridge, Placement Agent shall receive an additional cash fee and warrant. The cash fee shall equal 5.0% of the outstanding principal and interest of the Bridge that is converted into the Company’s equity securities. The Placement Agent shall also receive a warrant (the “ Bridge Conversion Warrant ”) to purchase such number of shares of the Company’s common stock equal to 15% of the total outstanding principal amount of the Bridge, that are converted into the Company’s equity securities. Each Bridge Conversion Warrant shall be exercisable for seven (7) years with an exercise price of $0.26 per share, and shall have standard terms, cashless exercise rights, and shall be adjusted both as to the number of shares and price into which and at which they are exercisable, based on any splits, conversions, or reorganizations that affect the Company’s common stock. Additionally, in the event that the Company reduces the strike or exercise price of any of its outstanding options or warrants, it will reduce the exercise price of the Bridge Conversion Warrants by the same percentage. In the event that the Company offers its securities at a valuation lower than the pre-money valuation of the Financing, the Company agrees to reduce the exercise price of the Bridge Conversion Warrants to a price per share equal to the effective price per share of such financing.
(b) Compensation for Financing . The Company shall, at each closing of the Financing, as compensation for the services provided by Placement Agent hereunder (i) pay Placement Agent a Cash Fee (as defined below) and (ii) issue a warrant (the “ Financing Warrant ”).
(i) The Cash Fee shall equal 10% of the gross cash proceeds invested by Placement Agent and its affiliates and/or any Qualified Investor in the Bridge, including gross cash proceeds invested in the Financing.
(ii) At each closing of the Financing, the Company shall issue a Financing Warrant to purchase such number of shares of the Company’s common stock equal to 15% of gross proceeds of the Financing. Each Financing Warrant shall have an exercise price of $0.26 per share, and shall be exercisable for a term of seven (7) years from the date of issuance and shall have standard terms, cashless exercise rights, and shall be adjusted both as to the number of shares and price into which and at which they are exercisable, based on any splits, conversions, or reorganizations that affect the Company’s common stock. Additionally, in the event that the Company reduces the strike or exercise price of any of its outstanding options or warrants, it will reduce the exercise price of the Financing Warrants by the same percentage. In the event that the Company offers its securities at a valuation lower than the pre-money valuation of the Financing, the Company agrees to reduce the exercise price of the Financing Warrants to a price per share equal to the effective price per share of such financing.
(c) Registration Rights. The Company has agreed to use its commercially reasonable efforts to file a registration statement under the Securities Act within thirty (30) days following the final closing of the Financing. The Company shall register the shares exercisable pursuant to the Bridge Conversion Warrants and the Financing Warrants on such registration statement.
3 |
3. Term . Placement Agent shall serve as the Company’s exclusive placement agent for a period of eighteen (18) months from the date set forth above unless earlier terminated as set forth herein (the “ Term ”).
4. Termination . Prior to the end of the Term, the Company may terminate this Agreement immediately and without notice in the event of a material breach of this Agreement by Placement Agent. In the event the Company terminates this Agreement, Placement Agent will be entitled to all applicable fees set forth in Section 2 hereof, earned prior to such termination. Upon termination of this Agreement, Placement Agent shall prepare and deliver to the Company a definitive list of prospective Qualified Investors contacted by Placement Agent in connection with the Offering with whom the Company had discussions by meeting or telephone conference during the Term of this Agreement (the “ Listed Investors ”). If the Financing does not close, in the event that the Company consummates a sale of any of its debt securities, equity securities or securities convertible into or exercisable in exchange for equity securities to any Listed Investor, or any debt securities held by Listed Investors are converted to equity securities within a period of eighteen (18) months following the date of termination of this Agreement (the “ Tail Period ”), then at each closing thereof, the Company shall pay all fees to Placement Agent, including the issuance of warrants as set forth in Section 2 hereof, in amounts equal to what Placement Agent would have earned from such sales had the Company closed on such investments under the terms of this Agreement.
5. Performance . In connection with the performance of its duties under this Agreement, Placement Agent agrees as follows:
(a) Placement Agent shall act in a manner consistent with the instructions of the Company and comply with all applicable laws, whether foreign or domestic, of each jurisdiction in which Placement Agent proposes to carry on the business contemplated by this Agreement. Placement Agent shall not take any action or omit to take any action that would cause the Company to violate any law or any applicable exemption from registration under the Securities Act or the Securities Exchange Act of 1934, as amended (the “ Exchange Act ”). Placement Agent is a member firm of the Financial Regulatory Authority (“ FINRA ”), has all authority and approvals needed to engage in securities trading and brokerage activities, as well as providing investment banking and financial advisory services. Placement Agent shall keep a record of when and to whom each Memorandum is provided. Placement Agent may elect to comply at its’ discretion with this Section 5(a) by posting the Memorandum in a password protected data room, and maintaining a file of that confirms who has viewed the Memorandum, and at what times on which dates.
4 |
(b) Placement Agent shall provide information regarding the Company only that is contained in the Company’s public filings, or which is, approved in form and content by the Company for dissemination to potential investors (such as a PowerPoint presentation) or other information that is available generally to the public (such as press releases or published articles) and shall not make any additional statements that contain an untrue statement of a material fact or omit to state any fact necessary to make any statement made by Placement Agent made not misleading in light of the circumstances in which they were made.
(c) Placement Agent shall not provide the Memorandum or any other information about the Company to any person or firm that, to the knowledge of Placement Agent, is a competitor of the Company or is an officer, director, employee, affiliate or significant investor in the Company.
(d) Placement Agent shall not engage in any form of general solicitation or general advertising with respect to the Financing.
(e) Before mentioning or sending any material related to the Company to any potential investor, Placement Agent shall, on the basis of Placement Agent’s prior relationship with the potential offeree, reasonably believe that the potential offeree is: (x) an “accredited investor” and, if applicable, satisfies any private placement requirements or laws or regulations associated with the Financing applicable in any non-U.S. jurisdiction and (y) so sophisticated and knowledgeable in business and financial matters that the potential offeree is capable of evaluating the merits and risks of an investment in the Company. In furtherance thereof, Placement Agent shall obtain from each Qualified Investor an accredited investor questionnaire in substantially the form attached hereto as Exhibit C .
(f) Placement Agent shall use its best efforts to cause its officers, directors, employees and affiliates to comply with all of the foregoing provisions of this Section 5 .
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6. Representations and Warranties .
(a) Placement Agent represents and warrants that it has full legal right to enter into and perform this Agreement and that its entry into and performance under this Agreement do not and will not violate any fiduciary or other duty it may have to any other person. Placement Agent represents and warrants that Placement Agent has and will maintain during this Agreement all licenses, registrations, permits and other authorizations required for Placement Agent to perform the activities and receive the compensation contemplated by this Agreement in each jurisdiction in which Placement Agent proposes to engage in such activities. In particular, but without limiting the generality of the foregoing, Placement Agent is and will be duly licensed or registered as a broker dealer or registered representative of a broker dealer under the Exchange Act, and under the laws of each jurisdiction requiring such licensing or registration. This Agreement, when executed and delivered by the parties hereto, shall constitute a valid and binding obligation of Placement Agent, enforceable in accordance with its terms, subject to laws of general application relating to bankruptcy, insolvency, the relief of debtors and federal and state securities laws.
(b) Placement Agent represents and warrants that it shall at all times provide its services under this Agreement in compliance with applicable law, including but not limited to, conducting an offering of a possible financing in a manner intended to qualify it as exempt from the registration requirements of the Securities Act, except for an initial public offering, not taking any action in connection with an offering of a possible financing which would constitute a general solicitation or general advertising, and not making any offers to any potential investor which it does not reasonably believe to be an “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or (7) under Regulation D of the Securities Act.
(c) Placement Agent is a member in good standing of FINRA, and is registered as a broker/dealer under the Securities Exchange Act of 1934, as amended.
(d) The Company has the full right, power and authority to execute, deliver and perform under this Agreement. This Agreement has been duly executed by the Company and this Agreement and the transactions contemplated by this Agreement, have been duly authorized by all necessary corporate action and this Agreement constitutes, and, upon their execution and delivery, the Bridge Conversion Warrant and the Financing Warrant will, each constitute, the legal, valid and binding obligations of the Company, enforceable in accordance with their respective terms.
(e) The Company represents and warrants that the Memorandum and any other materials provided by the Company to the Placement Agent for dissemination to potential investors contain no misrepresentation of a material fact, and do not omit a material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made, except that with respect to assumptions, projections, forward-looking statements and expressions of opinion or predictions made, the Company represents only that they were made in good faith.
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(f) All communications by the Company with Placement Agent shall be with Placement Agent’s President, legal counsel and/or designated investment banker(s) with respect to the Financing. The Company shall not communicate directly with any of Placement Agent’s brokers or known clients (until such time as such clients are stockholders of the Company) without the prior consent of Placement Agent. The provisions of this Section 6(f) shall not apply to clients of Placement Agent who are also stockholders of the Company.
7. Indemnification .
(a) The
Company agrees to indemnify and hold harmless Placement Agent, its officers, directors, employees, agents, legal counsel and any
of its affiliates (each, a “
Placement Agent Indemnified Party
”) against any and all losses, claims, damages,
liabilities, joint or several, and expenses (including all legal or other expenses reasonably incurred by a Placement Agent Indemnified
Party) caused by or arising out of any misrepresentation or untrue statement or alleged misrepresentation or untrue statement
of a material fact contained in the Memorandum or any other document furnished by the Company to Placement Agent for delivery
to or review by the Qualified Investors, or the omission or the alleged omission to state in such documents furnished to the Qualified
Investors a material fact necessary in order to make the statements therein not misleading in light of the circumstances under
which they were made, to the extent such misstatements or omissions are made in reliance upon and in conformity with written information
furnished by the Company for use in the documents furnished to the Qualified Investors, including the
Memorandum (except to the extent such misrepresentations, untrue statements or omissions are based on information
provided to the Company by Placement Agent). The Company agrees to reimburse the Placement Agent Indemnified Party for any reasonable
expenses (including reasonable fees and expenses of counsel) incurred as a result of producing documents, presenting testimony
or evidence, or preparing to present testimony or evidence (based upon time expended by the Placement Agent Indemnified Party
at its then current time charges or if such person shall have no established time charges, then based upon reasonable charges),
in connection with any court or administrative proceeding (including any investigation which may be preliminary thereto) arising
out of or relating to the performance by the Placement Agent Indemnified Party of any obligation hereunder and relating to a matter
for which the Company must provide indemnity to or hold harmless such Placement Agent Indemnified Party pursuant to the provisions
of this
subsection (a)
. In the event the Company shall be obligated to indemnify a Placement Agent Indemnified Party in
connection with any such proceeding, the Company shall be entitled to assume the defense of such proceeding, with counsel approved
by the Placement Agent Indemnified Party (which shall not be unreasonably withheld), upon the delivery to the Placement Agent
Indemnified Party of written notice of the Company’s election to do so.
(b) The Company agrees to indemnify and hold harmless each Placement Agent Indemnified Party against any and all losses, claims, damages, liabilities, joint or several, and expenses (including all legal or other expenses reasonably incurred by a Placement Agent Indemnified Party) caused by or arising out of any breach by the Company of any financial or other arrangement, including, but not limited to, any placement agent agreement, underwriting agreement or any other similar agreement or arrangement as of the date set forth above.
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(c) Placement Agent agrees to indemnify and hold harmless the Company, its officers, directors, employees, agents, legal counsel and its affiliates (each, a “ Company Indemnified Party ”) against any and all losses, claims, damages and liabilities, joint or several, and expenses (including all legal or other expenses reasonably incurred by a Company Indemnified Party) caused by or arising out of any misrepresentation or untrue statement or alleged misrepresentation or untrue statement of a material fact made by Placement Agent to the Qualified Investors, or Placement Agent’s omission or the alleged omission to state to the Qualified Investors a material fact necessary in order to make statements made not misleading in light of the circumstances under which they were made (except to the extent such misrepresentations, untrue statements or omissions are based on information provided to Placement Agent by the Company, including the Memorandum or any other document furnished by the Company to Placement Agent for delivery to or review by the Qualified Investors). Placement Agent agrees to reimburse the Company Indemnified Party for any reasonable expenses (including reasonable fees and expenses of counsel) incurred as a result of producing documents, presenting testimony or evidence, or preparing to present testimony or evidence (based upon time expended by the Company Indemnified Party at its then current time charges or if such person shall have no established time charges, then based upon reasonable charges), in connection with any court or administrative proceeding (including any investigation which may be preliminary thereto) arising out of or relating to the performance by the Company Indemnified Party of any obligation hereunder and relating to a matter for which the Company must provide indemnity to or hold harmless such Placement Agent Indemnified Party pursuant to the provisions of this subsection (b) . Placement Agent’s obligations under this Section 7(b) shall be limited to the net amount of Fees and expenses paid or payable by the Company to Placement Agent, other than fraud, intentional misrepresentation or willful breach. In the event Placement Agent shall be obligated to indemnify a Company Indemnified Party in connection with any such proceeding, Placement Agent shall be entitled to assume the defense of such proceeding, with counsel approved by the Company Indemnified Party (which shall not be unreasonably withheld), upon the delivery to the Company Indemnified Party of written notice of Placement Agent’s election to do so.
(d) Notwithstanding anything contained herein to the contrary, this Section 7 will survive expiration or termination of this Agreement indefinitely.
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8. Confidentiality . Except in keeping with its obligations under this Agreement, Placement Agent will maintain in confidence and will not use for its own benefit any inventions, confidential know-how, trade secrets, financial information and other non-public information and data disclosed to it by the Company, and it will not divulge the same to any other persons until such time as the information becomes a matter of public knowledge. Placement Agent will use its best efforts to prevent any unauthorized disclosure described above by others. This Section 8 will survive expiration or termination of this Agreement indefinitely.
9. Expenses . The Company shall pay Placement Agent a non-accountable expense fee equal to 3% of the gross proceeds received by the Company in the Financing. This fee will be payable at each closing. The Company shall be responsible for all federal, state “blue sky” and other filings pertaining to the Financing, including payment of such fees. Except as described above, each party shall bear its own fees and expenses incurred in connection with the Financing. In addition, the Company shall also pay up to $25,000 for accountable expenses that Placement Agent submits to the Company.
10. Independent Contractor . Placement Agent will perform its services hereunder as an independent contractor, and nothing in this Agreement will in any way be construed to constitute Placement Agent the agent, employee or representative of the Company. Neither Placement Agent nor any agent acting on behalf of Placement Agent will enter into any agreement or incur any obligations on the Company’s behalf or commit the Company in any manner or make any representations, warranties or promises on the Company’s behalf or hold itself (or allow itself to be held) as having any authority whatsoever to bind the Company without the Company’s prior written consent, or attempt to do any of the foregoing.
11. Subsequent Offerings . The Company agrees that during the Term, Placement Agent shall serve as Company’s exclusive placement agent and that in the event that the Company does an offering of its equity or debt securities subsequent to the Offering (“ Subsequent Offering ”) during the Term, the Company will not approach any other person about acting as placement agent (or similar capacity) in connection with such Subsequent Offering unless and until Placement Agent rejects the Company’s offer with respect to such Subsequent Offering in writing. The terms of Placement Agent’s engagement with respect to any Subsequent Offering will be subject to future negotiation by the Company and Placement Agent.
12. General .
(a) Reimbursement . If any future financial dispute, discrepancy or controversy arises between or among the Company, its stockholders and/or Placement Agent and results in Placement Agent causing an audit or accounting of the Company’s books and records, the Company shall reimburse Placement Agent for the reasonable and documented expenses relating to such audit or accounting.
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(b) Arbitration . The parties hereto agree that any dispute or controversy arising out of, relating to or concerning any interpretation, construction, performance or breach of this Agreement, shall be subject to the laws of the State of Delaware without giving effect to its conflicts of laws provisions. Any disputes will be settled in binding arbitration in Portland, Oregon under the auspices of FINRA dispute resolution. The Arbitrator may grant injunctions or other relief in such dispute or controversy. The decision of the arbitrator will be final, conclusive and binding on the parties to the arbitration. Judgment may be entered on the arbitrator’s decision in any court having jurisdiction. The parties shall each pay one-half of the costs and expenses of such arbitration, and each shall separately pay its counsel fees and expenses.
(c) Covenant against Assignment . This Agreement is personal to the parties hereto, and accordingly, except for the right to enforce the obligations under Sections 7 and 8 hereunder (which right shall inure to the benefit of the successors and assigns of the aggrieved party), neither this Agreement nor any right hereunder or interest herein may be assigned or transferred or charged by either party without the express written consent of the other.
(d) Entire Agreement; Amendment . This Agreement and the attached exhibits constitute the entire contract between the parties with respect to the subject matter hereof and supersede any prior agreements between the parties. This Agreement may not be amended, nor may any obligation hereunder be waived, except by an agreement in writing executed by, in the case of an amendment, each of the parties hereto, and, in the case of a waiver, by the party waiving performance.
(e) No Waiver . The failure or delay by a party to enforce any provision of this Agreement will not in any way be construed as a waiver of any such provision or prevent that party from thereafter enforcing any other provision of this Agreement. The rights granted both parties hereunder are cumulative and will not constitute a waiver of either party’s right to assert any other legal remedy available to it.
(f) Severability . Should any provision of this Agreement be found to be illegal or unenforceable, the other provisions will nevertheless remain effective and will remain enforceable to the greatest extent permitted by law.
(g) Notices . Any notice, demand, offer, request or other communication required or permitted to be given by either the Company or Placement Agent pursuant to the terms of this Agreement must be in writing and will be deemed effectively given the earlier of (i) when received, (ii) when delivered personally, (iii) one business day after being delivered by facsimile (with receipt of appropriate confirmation) to the number provided to the other party or such other number as a party may request by notifying the other in writing, (iv) one business day after being deposited with an overnight courier service or (v) four days after being deposited in the U.S. mail, First Class with postage prepaid, and addressed to the party at the address previously provided to the other party or such other address as a party may request by notifying the other in writing.
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(h) Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same agreement. Facsimile copies of signed signature pages will be deemed binding originals.
[Signature Page Follows]
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The parties have executed this Placement Agent Agreement as of the date first written above.
ANTRIABIO, INC. | ||
By: | /s/ Nevan Elam | |
Name: | Nevan Elam | |
Title: | CEO | |
PAULSON INVESTMENT COMPANY, INC. | ||
By: | /s/ Tom Parigian | |
Name: | Tom Parigian | |
Title: | Managing Partner |
S ignature Page To Placement Agent Agreement
EXHIBIT A
Term Sheet
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EXHIBIT B
Individuals and Entities Who Are Not Qualified Investors
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EXHIBIT C
Investor Questionnaire
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December 12, 2013
[INVESTOR]
RE: 8% CONVERTIBLE UNSECURED NOTE
Dear [INVESTOR]:
Reference is made to that certain 8% Convertible Unsecured Note dated as of [DATE], in the principal amount of [AMOUNT] dollars ($XXX) (the “Note”) made by AntriaBio, Inc., a Delaware Corporation (the “Borrower”), payable to the order of [INVESTOR] (the “Lender”). Capitalized terms used herein and not otherwise defined herein have the meanings assigned to them in the Note.
The Borrower has engaged Paulson Investment Company (“Paulson”) to raise up to three million five hundred thousand dollars ($3,500,000) in convertible promissory notes and to raise a follow on PIPE financing in excess of five million dollars in early 2014. The convertible promissory notes raised through Paulson will be convertible into shares of Borrower’s common stock at $0.21. The proceeds from the two Paulson-led financings will be used to further our clinical trials on our current product, lease a lab facility and perform leasehold improvements on the facility, as well as for general corporate purposes.
By its terms, the Note has an optional conversion by the Lender. The Borrower is requesting that the Lender amend sections 2.1 and 2.2 of the Note to fix the conversion price for conversion of the Note into shares of Borrower’s common stock at $0.25 per share, require a mandatory conversion at the time of the Qualified Financing and redefine the term Qualified Financing. For purposes of this letter agreement, until such time as this letter agreement terminates, a “Qualified Financing” is defined as the sale (pursuant to an equity financing, series of related equity financings or otherwise) by the Borrower of shares of Borrower’s common stock at a pre-money valuation of all of the shares of the Borrower’s stock, on an as converted fully diluted basis, of at least twenty million dollars which results in gross proceeds to the Borrower of at least three million dollars, not including the conversion of the convertible promissory notes raised through Paulson. Notwithstanding the foregoing, if the Borrower consummates an equity financing which is not a Qualified Financing as defined in this letter agreement (i.e., for a pre-money valuation of all of the shares of Borrower’s stock, on an as converted fully diluted basis, of less than twenty million dollars), then original terms of the Note shall apply, including, without limitation, the Conversion Price set forth therein.
This letter agreement is not effective until, and shall become effective with no further action of the parties hereto immediately upon, the closing of at least one million dollars of convertible promissory notes raised through Paulson (the “Closing”). The Borrower shall notify the Lender in writing of the Closing within five business days following the Closing. This letter agreement, except for the last sentence of this paragraph, will terminate on the earlier of (i) the mandatory conversion of the Note pursuant to a Qualified Financing or (ii) March 31, 2014, after which time, the original terms of the Note shall apply to the Borrower and the Lender and this letter agreement shall be null and void in all respects. Regardless of the termination of this letter agreement, the conversion of the convertible promissory notes raised through Paulson will not be considered towards a Qualified Financing (as defined in the original Note) and this provision will survive the termination of this letter agreement.
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999 18 th Street, Suite 3000, Denver, CO 80202 303.357.4651 P 303.446.9111 F www.antriabio.com |
The agreement of the Lender contained herein shall not be deemed to modify any other terms, covenants or agreements contained in the Note made by the Borrower to the Lender. The Borrower agrees that the agreement set forth in the preceding paragraph shall be limited to the precise meaning of the words as written therein and shall not be deemed (i) to be a consent to any waiver or modification of any other term or condition of the Note, or (ii) to prejudice any right or remedy that the Lender may now have or may in the future have under or in connection with any Note other than with respect to the matters for which the agreement in the preceding paragraph has been provided. The Borrower acknowledges and agrees that the agreements set forth in this letter are provided by the Lender as a financial accommodation to the Borrower. The agreement set forth in the preceding paragraph shall not alter, affect, release or prejudice in any way any of the Borrower’s obligations under the Note, and the representations and warranties made by the Borrower under the Note are true and correct as of the date hereof. This letter shall not be construed as establishing a course of conduct on the part of the Lender upon which Borrower may rely at any time in the future. The Borrower expressly waives any right to assert any claim to such effect at any time.
The Borrower hereby acknowledges and confirms that the Borrower’s obligations under the Note continue in all respects. The Borrower further acknowledges and confirms that the Note is ratified and confirmed in all respects and all terms, conditions and provisions of the Note, except as amended by this letter agreement at such time as this letter agreement becomes effective, remain unmodified and in full force and effect.
If these terms are acceptable to you, please so indicate in the space provided on the enclosed counterpart of this letter, date the same, and return it to the Borrower whereupon this letter shall become effective in accordance with its terms. If you have any questions about this letter, please do not hesitate to contact Morgan Fields, telephone number 303-357-4645.
Very truly yours, | |
Steve Howe, Chairman | |
AntriaBio, Inc. |
By | ||
Its |
Accepted and Agreed to | |
as of December 12, 2013 | |
1.
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I have reviewed this quarterly report on Form 10-Q of AntriaBio, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects, the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report.
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4.
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As the Registrant's sole certifying officer, I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
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a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and
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5.
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As the Registrant's sole certifying officer, I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors:
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a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.
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By:
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/s/ Nevan Elam
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Nevan Elam
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Principal Executive Officer
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and Principal Financial and Accounting Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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By:
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/s/ Nevan Elam
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Nevan Elam
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Principal Executive Officer
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and Principal Financial and Accounting Officer
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