ARTEMIS THERAPEUTICS, INC.
Item 1.01. Entry into a Material Definitive Agreement
On
October 23, 2017, Artemis Therapeutics, Inc., a Delaware corporation (the “
Company”), executed Securities Purchase Agreements (each, a “
Securities Purchase Agreement”) with a total of 6 accredited investors relating to a private placement offering (the “
Offering”) of an aggregate of 300,000 shares of
the Company’s common stock, $0.01 par value per share (the “
Common Stock”), at a purchase price of $1.00 per share, and of 250 shares of
the Company’s newly designated Series C Convertible Preferred Stock (the “
Series C Preferred Stock”), at a purchase price of $1,000.00 per share, with
such shares of Series C Preferred Stock initially convertible into an aggregate of 250,000 shares of Common Stock. In addition, each investor received a warrant (each, a “
Warrant”) to purchase fifty percent of the number of shares of Common Stock effectively purchased in the Offering, for an aggregate of 275,000 shares of Common Stock. The closing of the Offering took place on
October 23, 2017.
The Securities Purchase Agreement provides each investor with (i) a 12 month right to participate in future financings, (ii) a 24 month right to be issued additional securities in connection with any subsequent dilutive issuance by
the Company, and (iii) 24 month piggyback and demand registration rights. Each Warrant is immediately exercisable at an exercise price of $2.00 per share, expires 5 years from the date of issuance, may be exercised for cash or on a cashless basis, and contains future price-based and customary stock-based anti-dilution protections.
Pursuant to the Certificate of Designation of Preferences, Rights and Limitations of the Series C Preferred Stock (the “
Certificate of Designation”), the shares of Series C Preferred Stock are convertible into an aggregate of 250,000 shares of Common Stock based on a conversion price of $1.00 per share. Such conversion price is subject to future price-based and customary stock-based anti-dilution protections. The holders of the Series C Preferred Stock do not possess any voting rights but the Series C Preferred Stock does carry a liquidation preference for each holder equal to the investment made by such holder in the Offering. In addition, the holders of Series C Preferred Stock are eligible to participate in dividends and other distributions by
the Company on an as converted basis.
The securities issued in the Offering are exempt from the registration requirements of the Securities Act of 1933, as amended (the “
Securities Act”) pursuant to Section 4(a)(2) of the Securities Act and/or Rule 506(b) of Regulation D promulgated thereunder because, among other things, the transaction did not involve a public offering, the investors are accredited investors, the investors are taking the securities for investment and not resale and
the Company took appropriate measures to restrict the transfer of the securities. The securities have not been registered under the Securities Act and may not be sold in the United States absent registration or an exemption from registration. This Current Report on Form 8-K shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these Securities
in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The foregoing description of the Securities Purchase Agreement, Warrant and Certificate of Designation and the transactions contemplated thereby do not purport to be complete and are qualified in their entirety by reference to the full text of the form of Securities Purchase Agreement, form of Warrant and Certificate of Designation filed as Exhibits 10.1, 4.1 and 3.1 respectively, to this Current Report on Form 8-K and are
incorporated by reference herein. The Securities Purchase Agreement contains representations and warranties that the parties made to, and solely for the benefit of, the others in the context of all of the terms and conditions of that agreement and in the context of the specific relationship between the parties. The provisions of the Securities Purchase Agreement, including the representations and warranties contained therein, are not for the benefit of any party other than the parties
to such agreement and are not intended as documents for investors and the public to obtain factual information about the current state of affairs of the parties to those documents and agreements. Rather, investors and the public should look to other disclosures contained in
the Company’s filings with the Securities and Exchange Commission.
Item 3.02 Unregistered Sales of Equity Securities.
The response to this item is included in Item 1.01, Entry into a Material Definitive Agreement, and is incorporated herein in its entirety.
The
Certificate of Incorporation of
the Company authorizes the issuance of up to 200,000 shares of preferred stock and further authorizes the Board of Directors of
the Company to fix and determine the designation, preferences, conversion rights, or other rights, including voting rights, qualifications, limitations, or restrictions of the preferred stock.
On
October 23, 2017,
the Company filed the Certificate of Designation with the Delaware Secretary of State to designate the rights and preferences of up to 250 shares of Series C Preferred Stock, all of which were issued in connection with the Offering.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits