Chembio announced today that it has finished executing its plan to simplify its capital structure. As specified under the terms of the plan, all of the Company’s shares of Series A, B and C convertible preferred stock were converted into common stock. As a result, the Company’s capital structure now includes approximately 60.5 million shares of common stock outstanding, and 21.9 million warrants and options outstanding.
One of the conditions needed to be met before implementing the plan was that Chembio had to raise at least $1.0 million via the cash exercise of outstanding warrants. The Company exceeded this condition by reaching approximately $1.1 million. Furthermore, approximately 9.2 million warrants are entitled to be exercised at a reduced price of $0.45 per share for approximately 6 months.
Lawrence Siebert, Chairman and Chief Executive Officer of Chembio Diagnostics, stated, “The Plan transactions significantly simplify our capital structure, and also improve our financial condition as we grow our business and progress toward profitability. We believe that the Plan was accomplished in a way that limits dilution to common stockholders, and in a way that will allow the capital markets to more accurately value our Company.”
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