Subsequent Events |
6 Months Ended |
|---|---|
Nov. 30, 2020 | |
| Subsequent Events |
Note 15 . Subsequent Events In March 2020, the World Health Organization declared COVID-19 a pandemic. The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains and created significant volatility and disruption of financial markets. The Company’s operational and financial performance has already been affected by the impact of the COVID-19 pandemic; clinical trials have experienced delays in patient enrollment, potentially due to prioritization of hospital resources toward the COVID-19 pandemic, or concerns among patients about participating in clinical trials during a public health emergency and the COVID-19 pandemic is affecting the operations of government entities, such as the FDA, as well as contract research organizations, third-party manufacturers, and other third-parties upon whom the Company relies. As a result of “shelter-in-place” COVID-19, our Company has implemented work-from-home policies for employees. The effects of these stay at home orders and work-from-home policies may be negatively impacting productivity, resulting in delays in clinical programs and timelines. The extent of the impact of the COVID-19 pandemic on the Company’s operational and financial performance, including on the Company’s ability to execute its business strategies and initiatives in the expected time frame, will depend on future developments, including the duration and spread of the pandemic and related restrictions on travel and transports, all of which are uncertain and cannot be predicted. An extended period of global supply chain and economic disruption could materially affect the Company’s business, results of operations, access to sources of liquidity and financial condition. On December 18, 2020, the Company and the November 2020 Note holder entered into an exchange agreement, pursuant to which the November 2020 Note was partitioned into a new note (the “Partitioned Note”) with a principal amount equal to the Debt Reduction Amount of
$7.5
million, the outstanding balance of the November 2020 Note was reduced by the Partitioned Note, and the Company and the investor exchanged the Partitioned Note for approximately 2.2 million shares of the Company’s common stock $0.001 par value. Following this payment, the outstanding balance on the November 2020 Note, including accrued interest, was approximately
$21.3 million.
During December 2020, the Company entered into a private warrant exchange in which accredited investors purchased unregistered common stock at a range of $0.24 to $0.36 per share as compared to the stated exercise price on their warrant, which ranged from $0.30 to $0.45 per share of common stock. The Company issued approximately 2.2 shares of common stock, as well as approximately 0.2 million additional shares as an inducement to exercise their warrants, for a total of approximately 2.4 million shares of common stock, $0.001 par value. Aggregate gross proceeds from the private warrant exchange were approximately $0.6 million.During December 2020, the Company issued approximately
3.7
million shares of common stock, $0.001 par value, in connection with the exercise of outstanding warrants and stock options covering approximately
3.7
million shares. The stated exercise prices ranged from
$0.30 to $1.40
per share, which resulted in aggregate gross proceeds to the Company of approximately
$2.6 million.
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