Oxygen Biotherapeutics Enters Into Purchase Agreement to Sell $5 Million of Unsecured Promissory Notes to Vatea Fund
DURHAM, N.C., Oct 13, 2010 (GlobeNewswire via COMTEX) --
Oxygen Biotherapeutics, Inc. (Nasdaq:OXBT) (SIX Swiss Exchange:OXBT) entered into a Note Purchase Agreement with JP SPC 1 Vatea, Segregated Portfolio whereby the Company agreed to issue and sell to the Vatea Fund an aggregate of $5 million of senior unsecured promissory notes in a series of closings between October 31, 2010, and December 31, 2010. Vatea is a party to a securities purchase agreement with the Company, dated June 8, 2009, and subsequently amended. Vatea is the Company's largest shareholder, holding approximately 13.68% of the Company's outstanding common stock. In addition, Gregory Pepin, a director of the Company, is Investment Manager to the Vatea Fund.
"We are pleased to provide financial resources to Oxygen Biotherapeutics because we believe the Company is well positioned to move its commercial and research programs forward," said Mr. Pepin. "As a long term investor, we thought it was natural to step in and provide the financial support to help the company generate revenue from its DERMACYTE(R) skin care products and advance its research projects."
"We feel privileged to have the Vatea Fund as a long-term investor. This financing demonstrates their belief in our strategy and represents the catalyst required to enable us to advance on our commercial roadmap," said Chris Stern, Chairman & Chief Executive Officer of Oxygen Biotherapeutics.
Additional information regarding this agreement will be available on Form 8-K filed with the Securities and Exchange Commission at www.sec.gov later today.
About Oxygen Biotherapeutics, Inc.
Oxygen Biotherapeutics, Inc. is developing medical and cosmetic products that efficiently deliver oxygen to tissues in the body. The company has developed a proprietary perfluorocarbon (PFC) therapeutic oxygen carrier and liquid ventilation product called Oxycyte that is being formulated for both intravenous and topical delivery. This year, the company launched its DERMACYTE® line of oxygen-rich skin care products. In addition, the company is focused on perfluorocarbon-based oxygen carriers for use in traumatic brain injury, decompression sickness, personal care, and topical wound healing.
More information is available at www.oxybiomed.com or www.DermacyteUS.com.