Pressure BioSciences, Inc. (OTCQB: PBIO) a global leader in the development and sale of broadly enabling, high-pressure-based products and services to the life sciences and other industries, today announced that the Company’s largest shareholder has exchanged over $10 million of senior secured debt at 38% above current market price into unsecured preferred stock.
Pressure Biosciences Inc (OTCMKTS:PBIO) is one of the more innovative companies in existence at this point in time and it is involved in the manufacturing of pressure-based instruments which could be used across several industries. This morning the company is in the news after it announced that its biggest shareholder decided to exchange senior secured debt to the tune of $10 million for unsecured preferred stock in Pressure Biosciences.
The transaction is effectively the conversion of debt into stock. The debt included unpaid interest on promissory notes and convertible promissory notes that had been issued by the investors since November 2019. It also included the unpaid dividends on the Series AA Convertible Preferred stock of the company that had been purchased by the investor back in May 2018.
The conversion of the $10 million debt load constituted more than 50% of the total debt that the company currently owed to the investor. It also represented more than 30% of the total debt of the company at this point. The exchange had been completed for $2.50 a share of the company’s common stock.
That represented a premium of as much as 38% on the current valuation of the stock on the open market. It is a fairly exciting time at Pressure Biosciences considering the fact that not too long ago it had gone into significant collaborations related to its potentially revolutionary Ultra Shear Technology. It remains to be seen if the stock comes into focus today or not.