Abeona therapeutics announces pricing of $25 million private placement of convertible redeemable preferred stock

New york and cleveland, april 29, 2022 (globe newswire) -- abeona therapeutics inc. (nasdaq: abeo), a fully-integrated leader in cell and gene therapy, today announced that it has entered into a securities purchase agreement with certain institutional investors to purchase 1,000,006 shares of series a convertible redeemable preferred stock and 250,005 shares of series b convertible redeemable preferred stock. each share of series a and series b preferred stock has a purchase price of $19.00, representing an original issue discount of 5% of the $20.00 stated value of each share. each share of series a and series b preferred stock is convertible into shares of abeona's common stock at an initial conversion price of $0.45 per share. shares of the series a and series b preferred stock are convertible at the option of the holder at any time following the company's receipt of stockholder approval for a reverse stock split of the company's common stock. abeona will be permitted to redeem the series a preferred stock at its option upon the fulfillment of certain conditions and subject to certain limitations. the company and the holders of the series a and series b preferred stock will also enter into a registration rights agreement to register the resale of the shares of common stock issuable upon conversion of the series a and series b preferred stock. total gross proceeds from the offerings, before deducting discounts, placement agent's fees and other estimated offering expenses, is approximately $25 million.
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