Quarterly report pursuant to sections 13 or 15(d)

18. Subsequent Events

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18. Subsequent Events
6 Months Ended
Jun. 30, 2013
Subsequent Events [Abstract]  
18. Subsequent Events

18. Subsequent Events

On July 1, 2013, Marvin Rosen converted $200,000 of the New Rosen Note into 2,659,575 shares of common stock and warrants to purchase 1,329,788 shares of the Company’s common stock.  Also on July 1, 2013, another member of the Company’s Board of Directors converted approximately $6,000 that was owed to him into 76,237 shares of common stock and warrants to purchase 38,119 shares of the Company’s common stock.  The warrants are exercisable at 125% of the volume-weighted average price of the Company’s common stock for the 10 trading days prior to the date of conversion.

 

On July 10, 2013, the Company entered into subscription agreements with 12 accredited investors, under which the Company issued an aggregate of 10,362,174 shares of common stock and five-year warrants to purchase 5,181,087 shares of the Company’s common stock for aggregate consideration of $0.7 million.  The warrants are exercisable at 125% of the volume-weighted average price of the Company’s common stock for the 10 trading days prior to the date of closing.

 

On August 14, 2013, as more fully described in note 7, the Company and the Lenders entered into the Waiver Agreement to waive an event of default under the SPA and amend a related restrictive covenant contained in the SPA.