FOSTER CITY, Calif., Oct. 26, 2006 (PRIMEZONE) -- OXIS International, Inc. (OTCBB:OXIS) announced today that it completed a private placement of secured convertible debentures and warrants to institutional and accredited investors resulting in total gross proceeds of approximately $1.7 million. Bristol Investment Fund, Ltd. acted as lead investor in the financing.
Under the terms of the financing, OXIS International sold secured convertible debentures that are convertible into approximately 4.8 million shares of common stock, and warrants exercisable for up to approximately additional 14.5 million shares of common stock, at an initial conversion price of $0.35 per share. The warrants, designated as Series A, B, C, D and E warrants, have terms ranging from one to six years commencing on October 25, 2006, and have exercise prices ranging from $0.35 to $0.385 per share. The proceeds from the financing will be used for working capital, general corporate purposes, and the repayment of approximately $600,000 in prior indebtedness of OXIS.
Further details relating to the financing are included in the Form 8-K filed by OXIS International with the Securities and Exchange Commission ("SEC").
The securities were offered to accredited investors in reliance on an exemption from the registration requirements of the Securities Act of 1933 (the "Securities Act"). The offering has not been registered under the Securities Act or any state securities of "blue sky" laws, and the securities may not be offered or sold absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. OXIS International agreed, subject to certain terms and conditions, to file a registration statement under the Securities Act covering the resale of the shares issuable upon conversion of the debentures and exercise of the warrants. This press release does not and shall not constitute an offer to sell of the solicitation of an offer to buy securities.
About OXIS International
OXIS International, Inc., a Delaware corporation, is a clinical diagnostics company engaged in the development of clinical and research assays, diagnostics, nutraceutical and therapeutic products, which include new technologies applicable to conditions and diseases associated with oxidative stress. OXIS derives its revenues primarily from sales of research diagnostic assays to research laboratories. The Company's diagnostic products include five cardiac marker assays and 25 research assays to measure markers of oxidative and nitrosative stress. For more details, see the company's current and periodic reports as filed with the SEC.
Cautionary Statement Regarding Forward Looking Information
This release contains forward-looking information about OXIS International that is intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and include discussions of strategy, and statements about industry trends and OXIS International's future performance, operations and products.
This forward-looking information should be considered only in connection with risk factors under the heading "Factors That May Affect Future Operating Results" in the company's Form 10-QSB filed with the SEC on August 14, 2006, and its other periodic reports filed with the SEC. OXIS International assumes no obligations to update any forward-looking statements or information set forth in this press release.