GelTech, www.GelTechSolutions.com – a company that helps save water while revolutionizing firefighting with products like the patent pending FireIce® fire suppressant, announced today that it has signed a purchase agreement for up to $5M with institutional investor Lincoln Park Capital Fund LLC.
Lincoln has long served as a Chicago institution, managing a broad portfolio of private/public investments covering everything from life sciences to energy and technology.
CEO of GLTC, Michael Cordani, commented on the funding agreement with the forward-thinking Lincoln, noting the Company’s lack of any obligation to use the facility, and its intention to apply proceeds from the agreement toward working capital/current operations.
Major details of the agreement are as follows (full details disclosed in filed SEC Form 8-K):
• Lincoln invested $200k at $1.00 per share as an initial purchase, with warrants to purchase an equivalent number of shares at the exercise price of $1.25
• GelTech may sell, at its discretion, up to an additional $5M of its common stock periodically over 30 months
• GelTech may, but is not obligated to, sell stock to Lincoln in up to $500k amounts, contingent upon certain caveats set forth in the purchase agreement
• There is no upper limit on the price Lincoln may pay for GLTC common stock
• Purchase price of shares is related to the $5M of future funding, and cannot be less than $1.00 per share
• GelTech has control over the timing and amount of shares to be sold
• GelTech may terminate the agreement, at its discretion, at any time without penalties or costs
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