UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): May 4, 2005
Senesco Technologies, Inc.
(Exact Name of Registrant as Specified in Charter)
Delaware |
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001-31326 |
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84-1368850 |
(State or Other Jurisdiction |
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(Commission File Number) |
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(IRS Employer Identification No.) |
of Incorporation) |
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303 George Street, Suite 420, New Brunswick, New Jersey |
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08901 |
(Address of Principal Executive Offices) |
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(Zip Code) |
(732) 296-8400
(Registrants telephone number,
including area code)
Not applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Section Act (17 CFR 230.425).
o Soliciting material pursuant to Rule 14A-12 under the Exchange Act (17 CFR 240.14a-12).
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b)).
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).
Item 1.01 Entry into a Material Definitive Agreement.
Senesco Technologies, Inc., a Delaware corporation (the Company), entered into a Securities Purchase Agreement (the Securities Purchase Agreement) with institutional and other accredited investors, pursuant to which the Company will issue and sell an aggregate of approximately 1.6 million units at $2.11 per unit (calculated by taking a 25% discount to the average closing price of the Companys stock over a five trading day period, which was $2.81 per share (the Market Price)), comprised of one share of newly issued common stock, $0.01 par value per share (the Common Stock), and a five-year warrant to purchase 0.50 of a share of Common Stock at an exercise price of $3.38 (calculated by taking a 20% premium to the Market Price) per share (the Warrant).
Subject to certain closing conditions, the private placement is expected to close on or about May 6, 2005. The Company will receive gross proceeds equal to approximately $3.4 million.
Oppenheimer & Co. Inc. (Oppenheimer) acted as the placement agent for this private placement. Oppenheimer will receive a warrant to purchase approximately 168,000 shares of Common Stock, and a commission equal to approximately $236,000.
The securities sold in this private placement have not been registered under the Securities Act of 1933, as amended (the Securities Act), and may not be offered or sold in the United States in the absence of an effective registration statement or exemption from the registration requirements under the Securities Act. In accordance with the terms of the Securities Purchase Agreement, the Company has agreed to file a resale registration statement on Form S-3 by June 3, 2005 to register, pursuant to the Securities Act, the shares of Common Stock and shares of Common Stock underlying the Warrants, acquired by the investors.
A complete copy of each of the form of Warrant and Securities Purchase Agreement, and the Placement Agent Agreement and the related press release of the Company, are filed herewith as Exhibits 4.1, 10.1, 10.2, and 99.1, respectively, and are incorporated herein by reference. The foregoing descriptions of: (i) the Warrant, (ii) the Securities Purchase Agreement; (iii) the Placement Agent Agreement; and (iv) the press release and any other documents or filings referenced herein are qualified in their entirety by reference to such exhibits, documents or filings.
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Item 9.01. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit No. |
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Description |
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4.1 |
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Form of Warrant issued to certain accredited investors (with attached schedule of parties and terms thereto). |
10.1 |
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Form of Securities Purchase Agreement by and between the Company and certain accredited investors (with attached schedule of parties and terms thereto). |
10.2 |
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Placement Agent Agreement by and between the Company and Oppenheimer & Co. Inc. dated as of February 15, 2005 (with attachments thereto). |
99.1 |
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Press Release dated May 4, 2005, announcing the raising of funds from the private placement. |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
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SENESCO TECHNOLOGIES, INC. |
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Dated: May 5, 2005 |
By: |
/s/ Bruce Galton |
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Name: |
Bruce Galton |
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Title: |
President and Chief Executive Officer |
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EXHIBIT 4.1
FORM OF WARRANT
THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUED UPON ITS
EXERCISE ARE SUBJECT TO THE RESTRICTIONS ON
TRANSFER SET FORTH IN SECTION 4 OF THIS WARRANT
Warrant No. [ ] |
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Number of Shares: [ ] |
Date of
Issuance: May [ ],
2005 |
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Senesco Technologies, Inc.
Common Stock Purchase Warrant
(Void after May [ ], 2010)
Senesco Technologies, Inc., a Delaware corporation (the Company), for value received, hereby certifies that [ ], or its registered assigns (the Registered Holder), is entitled, subject to the terms and conditions set forth below, to purchase from the Company, at any time or from time to time on or after the date of issuance and on or before 5:00 p.m. (New York time) on May [ ], 2010, [ ] shares of Common Stock, $0.01 par value per share, of the Company (Common Stock), at a purchase price of $3.38 per share. The shares purchasable upon exercise of this Warrant, and the purchase price per share, each as adjusted from time to time pursuant to the provisions of this Warrant, are hereinafter referred to as the Warrant Shares and the Purchase Price, respectively. This Warrant is one of a series of Warrants issued by the Company in connection with a private placement of Common Stock and of like tenor, except as to the number of shares of Common Stock subject thereto (collectively, the Company Warrants).
1. Exercise.
Commission, the Registered Holder may, at its option, elect to exercise this Warrant, in whole or in part, on a cashless basis, by surrendering this Warrant, with the purchase form appended hereto as Exhibit I duly executed by or on behalf of the Registered Holder, at the principal office of the Company, or at such other office or agency as the Company may designate, by canceling a portion of this Warrant in payment of the Purchase Price payable in respect of the number of Warrant Shares purchased upon such exercise. In the event of an exercise pursuant to this subsection 1(b), the number of Warrant Shares issued to the Registered Holder shall be determined according to the following formula:
X = Y(A-B)
A
Where: X = the number of Warrant Shares that shall be issued to the Registered Holder;
Y = the number of Warrant Shares for which this Warrant is being exercised (which shall include both the number of Warrant Shares issued to the Registered Holder and the number of Warrant Shares subject to the portion of the Warrant being cancelled in payment of the Purchase Price);
A = the Fair Market Value (as defined below) of one share of Common Stock; and
B = the Purchase Price then in effect.
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Notwithstanding the foregoing, if the Board has not made such a determination within the three-month period prior to the Exercise Date, then (A) the Board shall make, and shall provide or cause to be provided to the Registered Holder notice of, a determination of the Fair Market Value per share of the Common Stock within 15 days of a request by the Registered Holder that it do so, and (B) the exercise of this Warrant pursuant to this subsection 1(b) shall be delayed until such determination is made and notice thereof is provided to the Registered Holder.
2. Adjustments.
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dividend or other distribution payable in additional shares of Common Stock, then and in each such event the Purchase Price then in effect immediately before such event shall be decreased as of the time of such issuance or, in the event such a record date shall have been fixed, as of the close of business on such record date, by multiplying the Purchase Price then in effect by a fraction:
provided, however, that if such record date shall have been fixed and such dividend is not fully paid or if such distribution is not fully made on the date fixed therefor, the Purchase Price shall be recomputed accordingly as of the close of business on such record date and thereafter the Purchase Price shall be adjusted pursuant to this paragraph as of the time of actual payment of such dividends or distributions.
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transaction covered by subsections 2(a) or 2(d)) (collectively, a Reorganization), then, following such Reorganization, the Registered Holder shall receive upon exercise hereof the kind and amount of securities, cash or other property which the Registered Holder would have been entitled to receive pursuant to such Reorganization if such exercise had taken place immediately prior to such Reorganization. Notwithstanding the foregoing sentence, if (x) there shall occur any Reorganization in which the Common Stock is converted into or exchanged for anything other than solely equity securities, and (y) the common stock of the acquiring or surviving company is publicly traded, then, as part of such Reorganization, (i) the Registered Holder shall have the right thereafter to receive upon the exercise hereof such number of shares of common stock of the acquiring or surviving company as is determined by multiplying (A) the number of shares of Common Stock subject to this Warrant immediately prior to such Reorganization by (B) a fraction, the numerator of which is the Fair Market Value (as defined below) per share of Common Stock as of the effective date of such Reorganization, and the denominator of which is the fair market value per share of common stock of the acquiring or surviving company as of the effective date of such transaction, as determined in good faith by the Board of Directors of the Company (the Board) (using the principles set forth in subsections 2(e)(i) and 2(e)(ii) to the extent applicable), and (ii) the exercise price per share of common stock of the acquiring or surviving company shall be the Purchase Price divided by the fraction referred to in clause (B) above. In any such case, appropriate adjustment (as determined in good faith by the Board) shall be made in the application of the provisions set forth herein with respect to the rights and interests thereafter of the Registered Holder, to the end that the provisions set forth in this Section 2 (including provisions with respect to changes in and other adjustments of the Purchase Price) shall thereafter be applicable, as nearly as reasonably may be, in relation to any securities, cash or other property thereafter deliverable upon the exercise of this Warrant.
The Fair Market Value per share of Common Stock shall be determined as follows:
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3. Fractional Shares. The Company shall not be required upon the exercise of this Warrant to issue any fractional shares, but shall pay the value thereof to the Registered Holder in cash on the basis of the Fair Market Value per share of Common Stock, as determined pursuant to subsection 2(e) above.
4. Transfers, etc.
The securities represented hereby have not been registered under the Securities Act of 1933, as amended, or any state securities laws and neither the securities nor any interest therein may not be offered, sold, transferred, pledged or otherwise disposed of except pursuant to an effective registration under such act or an exemption from registration, which, in the opinion of counsel reasonably satisfactory to counsel for this corporation, is available.
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The foregoing legend shall be removed from the certificates representing any Warrant Shares, at the request of the holder thereof, at such time as they become eligible for resale pursuant to Rule 144(k) under the Act or at such time as the Warrant Shares are sold or transferred in accordance with the requirements of a registration statement of the Company on Form S-3, or such other form as may then be in effect.
5. No Impairment. The Company will not, by amendment of its charter or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the Registered Holder against impairment.
6. Notices of Record Date, etc. In the event:
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7. Reservation of Stock. The Company will at all times reserve and keep available, solely for issuance and delivery upon the exercise of this Warrant, such number of Warrant Shares and other securities, cash and/or property, as from time to time shall be issuable upon the exercise of this Warrant.
8. Exchange or Replacement of Warrants.
9. Notices. All notices and other communications from the Company to the Registered Holder in connection herewith shall be mailed by certified or registered mail, postage prepaid, or sent via a reputable nationwide overnight courier service guaranteeing next business day delivery, to the address last furnished to the Company in writing by the Registered Holder. All notices and other communications from the Registered Holder to the Company in connection herewith shall be mailed by certified or registered mail, postage prepaid, or sent via a reputable nationwide overnight courier service guaranteeing next business day delivery, to the Company at its principal office set forth below. If the Company should at any time change the location of its principal office to a place other than as set forth below, it shall give prompt written notice to the Registered Holder and thereafter all references in this Warrant to the location of its principal office at the particular time shall be as so specified in such notice. All such notices and communications shall be deemed delivered one business day after being sent via a reputable international overnight courier service guaranteeing next business day delivery.
10. No Rights as Stockholder. Until the exercise of this Warrant, the Registered Holder shall not have or exercise any rights by virtue hereof as a stockholder of the Company. Notwithstanding the foregoing, in the event (i) the Company effects a split of the Common Stock by means of a stock dividend and the Purchase Price of and the number of Warrant Shares are adjusted as of the date of the distribution of the dividend (rather than as of the record date for such dividend), and (ii) the Registered Holder exercises this Warrant between the record date and the distribution date for such stock dividend, the Registered Holder shall be entitled to receive, on the distribution date, the stock dividend with respect to the shares of Common Stock acquired upon such exercise, notwithstanding the fact that such shares were not outstanding as of the close of business on the record date for such stock dividend.
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11. Amendment or Waiver. Any term of this Warrant may be amended or waived (either generally or in a particular instance and either retroactively or prospectively) with the written consent of the Company and the holders of Company Warrants representing at least two-thirds of the number of shares of Common Stock then subject to outstanding Company Warrants. Notwithstanding the foregoing, (a) this Warrant may be amended and the observance of any term hereunder may be waived without the written consent of the Registered Holder only in a manner which applies to all Company Warrants in the same fashion and (b) the number of Warrant Shares subject to this Warrant and the Purchase Price of this Warrant may not be amended, and the right to exercise this Warrant may not be waived, without the written consent of the Registered Holder (it being agreed that an amendment to or waiver under any of the provisions of Section 2 of this Warrant shall not be considered an amendment of the number of Warrant Shares or the Purchase Price). The Company shall give prompt written notice to the Registered Holder of any amendment hereof or waiver hereunder that was effected without the Registered Holders written consent. No waivers of any term, condition or provision of this Warrant, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition or provision.
12. Section Headings. The section headings in this Warrant are for the convenience of the parties and in no way alter, modify, amend, limit or restrict the contractual obligations of the parties.
13. Governing Law. This Warrant will be governed by and construed in accordance with the internal laws of the State of New York (without reference to the conflicts of law provisions thereof).
14. Facsimile Signatures. This Warrant may be executed by facsimile signature.
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EXECUTED as of the Date of Issuance indicated above.
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SENESCO TECHNOLOGIES, INC. |
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Name: |
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Title: |
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ATTEST: |
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EXHIBIT I
PURCHASE FORM
To: Senesco Technologies, Inc. |
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Dated: |
The undersigned, pursuant to the provisions set forth in the attached Warrant (No. ), hereby elects to purchase (check applicable box):
o shares of the Common Stock of Senesco Technologies, Inc. covered by such Warrant; or
o the maximum number of shares of Common Stock covered by such Warrant pursuant to the cashless exercise procedure set forth in subsection 1(b).
The undersigned herewith makes payment of the full purchase price for such shares at the price per share provided for in such Warrant. Such payment takes the form of (check applicable box or boxes):
o $ in lawful money of the United States; and/or
o the cancellation of such portion of the attached Warrant as is exercisable for a total of Warrant Shares (using a Fair Market Value of $ per share for purposes of this calculation) ; and/or
o the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 1(b), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 1(b).
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Signature: |
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Address: |
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EXHIBIT II
ASSIGNMENT FORM
FOR VALUE RECEIVED, hereby sells, assigns and transfers all of the rights of the undersigned under the attached Warrant (No. ) with respect to the number of shares of Common Stock of Senesco Technologies, Inc. covered thereby set forth below, unto:
Name of Assignee |
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Address |
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No. of Shares |
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Dated: |
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Signature: |
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Signature Guaranteed: |
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By: |
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The signature should be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program) pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934, as amended.
Senesco
Technologies, Inc.
Schedule of Accredited Investors
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Amount |
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# Shares |
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Warrants |
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1 |
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Hyme Akst |
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50,000 |
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23,697 |
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11,849 |
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2 |
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Stephen M. Bragin |
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25,000 |
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11,848 |
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5,924 |
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3 |
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Yvonne Briggs |
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10,550 |
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5,000 |
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2,500 |
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4 |
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Robert Castille |
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15,000 |
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7,109 |
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3,555 |
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5 |
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Frank Kee Colen |
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25,320 |
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12,000 |
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6,000 |
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6 |
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Paul S. Dennis |
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50,000 |
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23,697 |
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11,849 |
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7 |
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Doris Dworkin |
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25,000 |
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11,848 |
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5,924 |
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8 |
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Roger D. Elsas |
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25,000 |
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11,848 |
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5,924 |
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9 |
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Lou Fidanza |
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20,000 |
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9,479 |
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4,740 |
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10 |
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Joel Friedman |
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25,000 |
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11,848 |
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5,924 |
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11 |
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Morton E. Goulder Rev Trust |
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50,000 |
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23,697 |
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11,849 |
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12 |
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Richard Grobman |
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10,550 |
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5,000 |
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2,500 |
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13 |
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Hartzmark Investment, LLC |
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100,000 |
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47,393 |
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23,697 |
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14 |
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Alice Hechter Trust |
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50,000 |
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23,697 |
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11,849 |
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15 |
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Marian Heiser |
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25,000 |
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11,848 |
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5,924 |
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16 |
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Jo-Bar Enterprises, LLC / Russell Stone |
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50,000 |
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23,697 |
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11,849 |
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17 |
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Marvin Kogod |
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100,000 |
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47,393 |
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23,697 |
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18 |
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Daryl E. Lowenthal |
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25,000 |
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11,848 |
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5,924 |
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19 |
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Lisa Lowenthal Pruzan |
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25,000 |
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11,848 |
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5,924 |
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20 |
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Robert E. Lowenthal |
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25,000 |
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11,848 |
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5,924 |
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21 |
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Bennett Marks |
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20,000 |
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9,479 |
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4,740 |
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22 |
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Cherie Mintz |
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25,000 |
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11,848 |
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5,924 |
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23 |
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Dr. Stephen Mintz |
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25,000 |
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11,848 |
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5,924 |
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24 |
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Zubin R. Mory |
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5,000 |
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2,370 |
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1,185 |
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25 |
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Robert Neuhoff |
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25,320 |
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12,000 |
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6,000 |
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26 |
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Arlene Noble |
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25,000 |
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11,848 |
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5,924 |
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27 |
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Robert and Susan Okin |
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25,320 |
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12,000 |
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6,000 |
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28 |
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Kenneth M Reichle, Jr. |
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75,000 |
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35,545 |
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17,773 |
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29 |
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Rafael Rojas |
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25,000 |
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11,848 |
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5,924 |
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30 |
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Lawrence J. Rubinstein and Camille S. Rubinstein |
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14,770 |
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7,000 |
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3,500 |
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31 |
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Edward L. Ruch |
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50,000 |
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23,697 |
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11,849 |
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32 |
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Andrew E. Sandor |
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15,000 |
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7,109 |
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3,555 |
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33 |
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Victor J. Scaravilli |
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50,000 |
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23,697 |
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11,849 |
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34 |
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James A. Schoke Revocable Trust |
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25,000 |
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11,848 |
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5,924 |
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35 |
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Mark Schwartz |
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25,000 |
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11,848 |
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5,924 |
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36 |
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E. Donald Shapiro |
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100,000 |
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47,393 |
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23,697 |
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37 |
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Howard Synenberg |
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50,000 |
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23,697 |
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11,849 |
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38 |
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Lynn M. Taussig |
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25,000 |
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11,848 |
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5,924 |
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39 |
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Oscar Zimmerman |
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35,000 |
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16,588 |
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8,294 |
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40 |
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Capital Ventures International |
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500,000 |
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236,967 |
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118,484 |
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41 |
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Castle Creek Healthcare Partners LLC |
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250,000 |
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118,483 |
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59,242 |
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42 |
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Iroquos Master Fund Ltd. |
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600,000 |
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284,360 |
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142,180 |
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43 |
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Nite Capital, LP |
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250,000 |
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118,483 |
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59,242 |
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44 |
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Omicron Master Trust |
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399,999 |
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189,573 |
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94,787 |
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3,371,829 |
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1,598,020 |
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799,020 |
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EXHIBIT 10.1
FORM OF SECURITIES PURCHASE AGGREMENT
SECURITIES PURCHASE AGREEMENT
This Securities Purchase Agreement, dated on and as of the date set forth on the signature page hereto (this Agreement), is made between Senesco Technologies, Inc., a Delaware corporation (the Company), the undersigned purchaser(s) (each a Purchaser and collectively, the Purchasers) and each assignee of a Purchaser who becomes a party hereto.
WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act of 1933, as amended (the Securities Act) and Regulation D promulgated thereunder, the Company desires to offer, issue and sell to the Purchasers (the Offering), and the Purchasers, severally and not jointly, desire to purchase from the Company, shares (the Shares) of the Companys common stock, par value $0.01 per share (the Common Stock), and five-year warrants to purchase shares of Common Stock (the Warrants), with an exercise price per share equal to 120% of the Market Price (as hereinafter defined), as more fully described in this Agreement. The Shares and the Warrants are collectively referred to herein as the Securities.
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which is hereby acknowledged, the Company and each of the Purchasers agree as follows:
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Each of the Purchasers, severally and not jointly, hereby represents and warrants to the Company and the Placement Agent, and agrees with the Company as follows:
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able to bear the substantial economic risks of an investment in the Securities for an indefinite period of time, has no need for liquidity in such investment and can afford a complete loss of such investment.
The securities represented hereby have not been registered under the Securities Act of 1933, as amended, or any state securities laws and neither the securities nor any interest therein may be offered, sold, transferred, pledged or otherwise disposed of except pursuant to an effective registration under such act or an exemption from registration, which, in the opinion of counsel reasonably satisfactory to this corporation, is available.
Certificates evidencing the Shares and the Warrant Shares shall not be required to contain such legend or any other legend (i) following any sale of such Shares or Warrant Shares pursuant to Rule 144, or (ii) if such Shares or Warrant Shares are eligible for sale under Rule 144(k) or have been sold pursuant to the Registration Statement (as hereafter defined) and in compliance with the obligations set forth in Section E(6), below, or (iii) such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the Staff of the Securities and Exchange Commission), in each such case (i) through (iii) to the extent reasonably determined by the Companys legal counsel. At such time and to the extent a legend is no longer required for the Shares or Warrant Shares, the
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Company will use its best efforts to no later than five (5) trading days following the delivery by a Purchaser to the Company or the Companys transfer agent of a legended certificate representing such Shares or Warrant Shares (together with such accompanying documentation or representations as reasonably required by counsel to the Company), deliver or cause to be delivered a certificate representing such Shares or Warrant Shares that is free from the foregoing legend. If the Company fails to deliver a stock certificate to the Purchaser without such legend within five (5) trading days following the delivery by the Purchaser to the Company or the Transfer Agent of the required documentation and representations (the Legend Receipt Date), then in addition to other equitable and other remedies available to the Purchaser, the Company will pay the Purchaser, as partial liquidated damages, an amount in cash equal to 1.5% of the aggregate purchase price paid for the shares that are being presented for legend removal on the Legend Receipt Date, and pay to the Purchaser an additional 1.5% of the aggregate purchase price paid for the shares that are being presented for legend removal on the calendar day following every successive 30-day period thereafter or any portion thereof until the legend is removed. All costs and expenses related to the removal of the legends and the reissuance of any Securities shall be borne by the Company. Delivery shall be deemed to occur pursuant to this paragraph, one day after delivery of the required materials to a recognized overnight courier service.
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position in connection with the Offering, including, without limitation, any such misrepresentation, misstatement or omission contained in the Agreement or any other document submitted by the Purchaser, against losses, liabilities and expenses for which the Company or any officer, director or control person has not otherwise been reimbursed (including attorneys fees, judgments, fines and amounts paid in settlement) actually and reasonably incurred by the Company or such officer, director or control person in connection with such action, suit or proceeding. For the avoidance of doubt, such indemnification shall be the several, and not joint, obligation of each Purchaser with respect to its own action or inaction as provided above.
The Company hereby makes the following representations and warranties to the Purchasers and the Placement Agent, which representations and warranties shall survive the Closing and the purchase and sale of the Securities.
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complete and accurate in all material respects, except for such omissions and inaccuracies which, individually or in the aggregate, do not and would not have a Material Adverse Effect on the Company and its subsidiaries taken as a whole. The Company and each subsidiary has paid or made provisions for the payment of all Taxes shown to be due on such tax returns and all additional assessments, and adequate provisions have been and are reflected in the financial statements of the Company and the subsidiaries for all current Taxes to which the Company or any subsidiary is subject and which are not currently due and payable, except for such Taxes which, if unpaid, individually or in the aggregate, do not and would not have a Material Adverse Effect on the Company and its subsidiaries, taken as a whole. None of the federal income tax returns of the Company or any subsidiary for the past five years has been audited by the Internal Revenue Service. The Company has not received written notice of any assessments, adjustments or contingent liability (whether federal, state, local or foreign) in respect of any Taxes pending or threatened against the Company or any subsidiary for any period which, if unpaid, would have a Material Adverse Effect on the Company and the subsidiaries taken as a whole.
10
judicial or administrative interpretation thereof, including orders, consent decrees or judgments relating to the regulation and protection of human health, safety, the environment and natural resources.
11
12
Purchasers and certain other accredited investors within the meaning of Rule 501 under the Securities Act.
Each of the Purchasers understands, acknowledges and agrees with the Company as follows:
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14
following the Closing date (such date of actual filing, the Filing Date). The Registration Statement shall be on Form S-3 and shall contain (except if otherwise directed by the Purchasers) a Plan of Distribution substantially in the form attached hereto as Exhibit E. Each Purchaser will furnish to the Company in writing the information specified in Item 507 or 508 of Regulation S-K, as applicable, of the Securities Act for use in connection with the Registration Statement or prospectus or preliminary prospectus included therein. Each Purchaser agrees to promptly furnish additional information required to be disclosed in order to make the information previously furnished to the Company by such Purchaser not materially misleading. The Registration Statement shall register the Registrable Securities for resale by the holders thereof.
15
The payment obligations of the Company under this Paragraph (2)(d) shall be cumulative.
16
forth in this Section E(3)(b) and/or Section E(3)(g) below, then in addition to other equitable and other remedies available to the Purchaser, the Company will pay the Purchaser on the 41st trading day, as partial liquidated damages, an amount in cash equal to 1.5% of the aggregate purchase price paid by that Purchaser and pay to the Purchaser an additional 1.5% of the aggregate purchase price paid on the calendar day following every successive 30-day period thereafter or any portion thereof that the Registration Statement is not effective
17
required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however, that the Company may suspend sales pursuant to the Registration Statement for a period of up to sixty (60) days (unless the holders of at least two-thirds of the Registrable Securities consent in writing to a longer delay of up to an additional thirty (30) days) no more than once in any twelve-month period if the Company furnishes to the holders of the Registrable Securities a certificate signed by the Companys Chief Executive Officer stating that in the good faith judgment of the Companys Board of Directors, (i) the offering could reasonably be expected to interfere in any material respect with any acquisition, corporate reorganization or other material transaction under consideration by the Company or (ii) there is some other material development relating to the operations or condition (financial or other) of the Company that has not been disclosed to the general public and as to which it is in the Companys best interests not to disclose such development; provided further, however, that the Company may not so suspend sales more than once in any calendar year without the written consent of the holders of at least two-thirds of the Registrable Securities.
18
supplement thereto, in light of the circumstances under which they were made) not misleading, except to the extent, but only to the extent, that (i) such untrue statements or omissions are based upon information regarding such Purchaser furnished in writing to the Company by such Purchaser expressly for use therein, or to the extent that such information related to such Purchaser or such Purchasers proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Purchaser expressly for use in the Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto (which shall, however, be deemed to include disclosure substantially in accordance with the Plan of Distribution attached hereto), or (ii) in the case of an occurrence of an event of the type specified in Paragraph (3)(b) above, the use by such Purchaser of an outdated or defective Prospectus after the Company has notified such Purchaser in writing that the Prospectus is outdated or defective and prior to the receipt by such Purchaser of the Advice contemplated in Paragraph (6) below. The Company shall notify the Purchasers promptly of the institution, threat or assertion of any Proceeding of which the Company is aware in connection with the transactions contemplated by this Agreement.
19
Indemnifying Party) in writing, and the Indemnifying Party shall assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof, provided, that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that such failure shall have prejudiced the Indemnifying Party. An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (i) the Indemnifying Party has agreed in writing to pay such fees and expenses; or (ii) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (iii) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Party; provided, however, that in the event that the Indemnifying Party shall be required to pay the fees and expenses of separate counsel, the Indemnifying Party shall only be required to pay the fees and expenses of one separate counsel for such Indemnified Party or Parties. The Indemnifying Party shall not be liable for any settlement of any such Proceeding affected without its written consent, which consent shall not be unreasonably withheld. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding. All fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within ten trading days of written notice thereof to the Indemnifying Party (regardless of whether it is ultimately determined that an Indemnified Party is not entitled to indemnification hereunder; provided, that the Indemnifying Party may require such Indemnified Party to undertake to reimburse all such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not entitled to indemnification hereunder).
20
The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in Paragraph (5)(c), any reasonable attorneys or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Paragraph 5(d) was available to such party in accordance with its terms.
The parties hereto agree that it would not be just and equitable if contribution pursuant to this Paragraph (5)(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provision of this Paragraph (5)(d), no Purchaser shall be required to contribute, in the aggregate, any amount in excess of the amount by which the proceeds actually received by such Purchaser from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.
The indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties.
21
Statement covering all of the Registrable Securities and the Company shall determine to prepare and file with the SEC a registration statement relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities, other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with stock option or other employee benefit plans, then the Company shall send to each Purchaser written notice of such determination and if, within fifteen (15) days after receipt of such notice, any such Purchaser shall so request in writing, the Company shall include in such registration statement all or any part of such Registrable Securities not already covered by an effective Registration Statement such Purchaser requests to be registered.
22
(i) if to the Company, at
or such other address as it shall have specified to the Purchaser in writing, with a copy (which shall not constitute notice) to:
(ii) if to the Purchaser, at its address set forth on the signature page to this Agreement, or such other address as it shall have specified to the Company in writing.
23
the actions of any such Purchaser other than through the execution hereof. Nothing contained herein solely by virtue of being contained herein shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any similar entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated hereby.
The signature page of this Agreement is contained as part of the applicable subscription package, entitled Signature Page.
* * * * * * *
24
SIGNATURE PAGE
The Purchaser hereby subscribes for such number of Shares as shall equal the Subscription Amount as set forth below, divided by the Offering Price, and shall also receive a Warrant to purchase such number of shares of Common Stock calculated as set forth in this Agreement, and agrees to be bound by the terms and conditions of this Agreement.
PURCHASER
1. Dated: May , 2005
2. Total Subscription Amount: $
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Taxpayer Identification or Social |
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Name (please print as name will appear |
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on stock certificate) |
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ACCEPTED BY: |
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SENESCO TECHNOLOGIES, INC. |
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By: |
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Name: |
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Title: |
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Dated: |
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Schedule A
Escrow Instructions
PLEASE SEND WIRE TRANSFERS TO THE ESCROW ACCOUNT AS FOLLOWS:
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Bank: |
Bank of New York |
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ABA No. |
021000018 |
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General Ledger Account #: |
111-565 |
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Customer Account #: |
275987 |
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Account Name: |
Oppenheimer & Co./Senesco |
Exhibit A
Legal Matters
Morgan Lewis & Bockius LLP shall deliver an opinion covering the following matters. The opinion shall be subject to and include customary assumptions, limitations and qualifications.
1. The Company is a corporation, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority under the laws of the State of Delaware to conduct its business as it is described in the Memorandum and in the Companys Form 10-QSB for the quarter ended December 31, 2004 and in the Companys Form 10-KSB for the year ended June 30, 2004 and the Definitive Proxy Statement dated November 5, 2004, and to enter into and perform its obligations under the Agreement.
2. The authorized capital stock of the Company consists of 35,000,000 shares of stock of all classes. The authorized capital stock is divided into 30,000,000 shares of Common Stock, $0.01 par value per share (the Common Stock), and 5,000,000 shares of Preferred Stock, $0.01 par value per share (the Preferred Stock). As of the date of the Memorandum, there were 13,812,696 shares of Common Stock issued and outstanding, and no shares of Preferred Stock issued and outstanding.
3. The Shares have been duly authorized or reserved for issuance by all necessary corporate action on the part of the Company; and the Shares, when issued and delivered against payment therefor in accordance with the provisions of the Agreement, will be validly issued, fully paid and non-assessable. The Warrants have been duly authorized by all necessary corporate action on the part of the Company, and the Warrant Shares have been duly reserved for issuance and, when issued and delivered against payment therefor upon the due exercise of the Warrants in accordance with the provisions thereof, will be validly issued, fully paid and non-assessable shares of Common Stock.
4. The execution and delivery by the Company of the Agreement, and the consummation by the Company of the transactions contemplated thereby, have been duly authorized by all necessary corporate action on the part of the Company. The Agreement constitutes the valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as rights to indemnification and contribution thereunder may be limited by applicable law and except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting creditors rights generally or by general equitable principles.
5. The execution and delivery by the Company of the Agreement, and the consummation by the Company of the transactions contemplated thereby, do not (a) violate the provisions of any federal law of the United States of America or the General Corporation Law of the State of Delaware applicable to the Company; (b) violate the provisions of the Companys Amended and Restated Certificate of Incorporation or Amended and Restated By-laws; or
(c) violate any existing obligation of the Company under any judgment, decree, order or award of any court, governmental body or arbitrator specifically naming the Company and of which we are aware.
6. Assuming (a) the accuracy of the representations made by each Purchaser in the Agreement; (b) that neither the Company, the Placement Agent nor any person acting on behalf of either the Company or the Placement Agent has offered or sold the Securities by any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D promulgated (the Regulation D) under the Securities Act; (c) that no offerings or sales of securities of the Company after the date hereof in a transaction can be integrated with any sales of the Securities; and (d) that each person or entity that purchased securities of the Company directly from the Company or its agents and without registration between the date six months prior to the Closing of the Offering and the date of the Agreement was, as of the date of such purchase, an accredited investor as defined in Rule 501 of Regulation D, the sale of the Securities to the Purchasers at the Closing under the circumstances contemplated by this Agreement are exempt from the registration and prospectus delivery requirements of Section 5 of the Securities Act.
7. To our knowledge, without any inquiry (including, without limitation, without any docket search or other inquiry), there is no action, proceeding or litigation pending or threatened against the Company before any court, governmental or administrative agency or body required to be described in the Companys Form 10-QSB for the quarter ended December 31, 2004, Form 10-KSB for the fiscal year ended June 30, 2004, and the Definitive Proxy Statement dated November 5, 2004, which is not otherwise disclosed therein.
Exhibit B
Form of Warrant
Exhibit C
Senesco Technologies, Inc.
Confidential Purchaser Questionnaire
Before any sale of securities in the above-captioned Company can be made to you, this Questionnaire must be completed and returned to OPPENHEIMER & CO. INC., Attn: Investment Banking Dept., 125 Broad St., New York, NY 10004.
The purpose of this Questionnaire is to substantiate that you meet the standards imposed by Section 4(2) of the Securities Act of 1933, as amended (the Securities Act).
(1) Name:
(2) Principal Business Address:
Telephone: ( )
(3) Home Address (for individual investors):
Telephone: ( )
(4) Social Security Number or Tax ID Number:
(5) Occupation (for individual investors):
(6) Age (for individual investors):
(7) The following information is required to substantiate that you qualify as an accredited investor as defined in Rule 501 of Regulation D under the Securities Act. Please check which of the following you are:
(a) A bank as defined in Section 3(a)(2) of the Securities Act, or any savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended; any insurance company as defined in Section 2(13) of the Securities Act; any investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that act; any Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefits of its employees if such plan has total assets in
excess of $5,000,000; any employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000, or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;
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Yes o |
No o |
(b) A private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940;
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Yes o |
No o |
(c) An organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;
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Yes o |
No o |
(d) A director or executive officer of the Company;
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Yes o |
No o |
(e) A natural person whose individual net worth, or joint net worth with your spouse, at the time of your purchase exceeds $1,000,000;
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Yes o |
No o |
(f) A natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with your spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year;
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Yes o |
No o |
(g) A trust, with total assets in excess of $5,000,000 not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii); or
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Yes o |
No o |
(h) Any entity in which all of the equity owners are accredited investors.
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Yes o |
No o |
(8) Investment, business, and educational experience (for individual investors):
(a) Educational background:
(b) Principal employment positions held during last five years:
(c) Frequency of prior investment (check one in each column):
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Stocks & Bonds |
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Venture Capital |
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Frequently |
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Occasionally |
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Never |
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(9) Please list the name and address of your (for individual investors):
(a) Bank
(b) Accountant
I represent that the foregoing information is true and correct. |
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Dated: |
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, 2005 |
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(Name of Investor - Please Print) |
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(Signature) |
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Exhibit D
Selling Stockholder Questionnaire
To: Senesco Technologies, Inc.
c/o Emilio Ragosa, Esq.
Morgan Lewis & Bockius LLP
502 Carnegie Center
Princeton, New Jersey 08540-6241
Reference is made to the Securities Purchase Agreement (the Agreement), made between Senesco Technologies, Inc., a Delaware corporation (the Company), and the Purchasers noted therein.
Pursuant to Section B(12) of the Agreement, the undersigned hereby furnishes to the Company the following information for use by the Company in connection with the preparation of the Registration Statement contemplated by Section E of the Agreement.
(1) Name and Contact Information:
Full legal name of record holder: |
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Address of record holder: |
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Social Security Number or Taxpayer |
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Identity of beneficial owner (if |
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Name of contact person: |
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Telephone number of contact person: |
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Fax number of contact person: |
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E-mail address of contact person: |
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(2) Beneficial Ownership of Registrable Securities:
(a) Number of Registrable Securities owned by Selling Stockholder:
(b) Number of Registrable Securities requested to be registered:
(3) Beneficial Ownership of Other Securities of the Company Owned by the Selling Stockholder:
Except as set forth below in this Item (3), the undersigned is not the beneficial or registered owner of any securities of the Company other than the Registrable Securities listed above in Item (2)(a).
Type and amount of other securities beneficially owned by the Selling Stockholder:
(4) Relationships with the Company:
Except as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (5% or more) has held any position or office or has had any other material relationship with the Company (or its predecessors or affiliates) during the past three years.
State any exceptions here:
(5) Plan of Distribution:
Except as set forth below, the undersigned intends to distribute pursuant to the Registration Statement the Registrable Securities listed above in Item (2) in accordance with the Plan of Distribution section set forth therein:
State any exceptions here:
(6) Selling Stockholder Affiliations:
(a) Is the Selling Stockholder a registered broker-dealer?
(b) Is the Selling Stockholder an affiliate of a registered broker-dealer(s)? (For purposes of this response, an affiliate of, or person affiliated with, a specified person, is a person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the person specified.)
(c) If the answer to Item (6)(b) is yes, identify the registered broker-dealer(s) and describe the nature of the affiliation(s):
(d) If the answer to Item (6)(b) is yes, did the Selling Stockholder acquire the Registrable Securities in the ordinary course of business (if not, please explain)?
(e) If the answer to Item (6)(b) is yes, did the Selling Stockholder, at the time of purchase of the Registrable Securities, have any agreements, plans or understandings, directly or indirectly, with any person to distribute the Registrable Securities (if yes, please explain)?
(7) Voting or Investment Control over the Registrable Securities:
If the Selling Stockholder is not a natural person, please identify the natural person or persons who have voting or investment control over the Registrable Securities listed in Item (2) above:
Pursuant to Section E(3) of the Agreement, the undersigned acknowledges that the Company may, by notice to the Placement Agent and to each Purchaser at its last known address, suspend or withdraw the Registration Statement and require that the undersigned immediately cease sales of Registrable Securities pursuant to the Registration Statement under certain circumstances described in the Agreement. At any time that such notice has been given, the undersigned may not sell Registrable Securities pursuant to the Registration Statement.
The undersigned hereby acknowledges receipt of the Registration Statement draft dated , 2005 and confirms that the undersigned has reviewed such draft including, without limitation, the sections captioned Selling Stockholders and Plan of Distribution, and confirms that, to the best of the undersigneds knowledge, the same is true, complete and accurate in every respect except as indicated in this Questionnaire. The undersigned hereby further acknowledges that pursuant to Section B(12) of the Agreement, the undersigned shall
indemnify the Company and each of its directors and officers against, and hold the Company and each of its directors and officers harmless from, any losses, claims, damages, expenses or liabilities (including reasonable attorneys fees) to which the Company or its directors and officers may become subject by reason of any statement or omission in the Registration Statement made in reliance upon, or in conformity with, a written statement by the undersigned, including the information furnished in this Questionnaire by the undersigned.
By signing below, the undersigned consents to the disclosure of the information contained herein in its answers to Items (1) through (7) above and the inclusion of such information in the Registration Statement, any amendments thereto and the related prospectus. The undersigned understands that such information will be relied upon by the Company in connection with the preparation or amendment of the Registration Statement and the related prospectus.
The undersigned has reviewed the answers to the above questions and affirms that the same are true, complete and accurate. THE UNDERSIGNED AGREES TO NOTIFY THE COMPANY IMMEDIATELY OF ANY CHANGES IN THE FOREGOING INFORMATION.
Dated: |
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, 2005 |
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Signature of Record Holder |
Exhibit E
Plan of Distribution
The Selling Stockholders and any of their pledges, assignees, donees selling shares received from such Selling Stockholders as a gift, and successors-in-interest may, from time to time, sell any or all of their shares of Common Stock on any stock exchange, market or trading facility on which the shares are traded or in private transactions. These sales may be at fixed or negotiated prices. The Selling Stockholders may use any one or more of the following methods when selling shares:
ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;
block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;
purchases by a broker-dealer as principal and resale by the broker-dealer for its account;
an exchange distribution in accordance with the rules of the applicable exchange;
privately negotiated transactions;
broker-dealers may agree with the Selling Stockholders to sell a specified number of such shares at a stipulated price per share;
a combination of any such methods of sale; and
any other method permitted pursuant to applicable law.
The Selling Stockholders may also sell shares under Rule 144 under the Securities Act of 1933, as amended, if available, rather than under this prospectus.
Broker-dealers engaged by the Selling Stockholders may arrange for other broker-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser) in amounts to be negotiated. The Selling Stockholders do not expect these commissions and discounts to exceed what is customary in the types of transactions involved.
The Selling Stockholders and any broker-dealers or agents that are involved in selling the shares may be deemed to be underwriters within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act.
The Company is required to pay all fees and expenses incident to the registration of the shares, including certain fees and disbursements of counsel to the Selling Stockholders. The Company has agreed to indemnify the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.
To the extent required, the Company will amend or supplement this prospectus to disclose material arrangements regarding the plan of distribution.
To comply with the securities laws of certain jurisdictions, registered or licensed brokers or dealers may need to offer or sell the shares offered by this prospectus. The applicable rules and regulations under the Securities Exchange Act of 1934, as amended, may limit any person engaged in a distribution of the shares of common stock covered by this prospectus in its ability to engage in market activities with respect to such shares. A selling stockholder, for example, will be subject to applicable provisions of the Exchange Act and the rules and regulations under it, which provisions may limit the timing of purchases and sales of any shares of common stock by that selling stockholder.
Senesco
Technologies, Inc.
Schedule of Accredited Investors
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Amount |
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# Shares |
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Warrants |
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1 |
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Hyme Akst |
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50,000 |
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23,697 |
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11,849 |
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2 |
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Stephen M. Bragin |
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25,000 |
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11,848 |
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5,924 |
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3 |
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Yvonne Briggs |
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10,550 |
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5,000 |
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2,500 |
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4 |
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Robert Castille |
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15,000 |
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7,109 |
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3,555 |
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5 |
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Frank Kee Colen |
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25,320 |
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12,000 |
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6,000 |
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6 |
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Paul S. Dennis |
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50,000 |
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23,697 |
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11,849 |
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7 |
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Doris Dworkin |
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25,000 |
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11,848 |
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5,924 |
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8 |
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Roger D. Elsas |
|
25,000 |
|
11,848 |
|
5,924 |
|
9 |
|
Lou Fidanza |
|
20,000 |
|
9,479 |
|
4,740 |
|
10 |
|
Joel Friedman |
|
25,000 |
|
11,848 |
|
5,924 |
|
11 |
|
Morton E. Goulder Rev Trust |
|
50,000 |
|
23,697 |
|
11,849 |
|
12 |
|
Richard Grobman |
|
10,550 |
|
5,000 |
|
2,500 |
|
13 |
|
Hartzmark Investment, LLC |
|
100,000 |
|
47,393 |
|
23,697 |
|
14 |
|
Alice Hechter Trust |
|
50,000 |
|
23,697 |
|
11,849 |
|
15 |
|
Marian Heiser |
|
25,000 |
|
11,848 |
|
5,924 |
|
16 |
|
Jo-Bar Enterprises, LLC / Russell Stone |
|
50,000 |
|
23,697 |
|
11,849 |
|
17 |
|
Marvin Kogod |
|
100,000 |
|
47,393 |
|
23,697 |
|
18 |
|
Daryl E. Lowenthal |
|
25,000 |
|
11,848 |
|
5,924 |
|
19 |
|
Lisa Lowenthal Pruzan |
|
25,000 |
|
11,848 |
|
5,924 |
|
20 |
|
Robert E. Lowenthal |
|
25,000 |
|
11,848 |
|
5,924 |
|
21 |
|
Bennett Marks |
|
20,000 |
|
9,479 |
|
4,740 |
|
22 |
|
Cherie Mintz |
|
25,000 |
|
11,848 |
|
5,924 |
|
23 |
|
Dr. Stephen Mintz |
|
25,000 |
|
11,848 |
|
5,924 |
|
24 |
|
Zubin R. Mory |
|
5,000 |
|
2,370 |
|
1,185 |
|
25 |
|
Robert Neuhoff |
|
25,320 |
|
12,000 |
|
6,000 |
|
26 |
|
Arlene Noble |
|
25,000 |
|
11,848 |
|
5,924 |
|
27 |
|
Robert and Susan Okin |
|
25,320 |
|
12,000 |
|
6,000 |
|
28 |
|
Kenneth M Reichle, Jr. |
|
75,000 |
|
35,545 |
|
17,773 |
|
29 |
|
Rafael Rojas |
|
25,000 |
|
11,848 |
|
5,924 |
|
30 |
|
Lawrence J. Rubinstein and Camille S. Rubinstein |
|
14,770 |
|
7,000 |
|
3,500 |
|
31 |
|
Edward L. Ruch |
|
50,000 |
|
23,697 |
|
11,849 |
|
32 |
|
Andrew E. Sandor |
|
15,000 |
|
7,109 |
|
3,555 |
|
33 |
|
Victor J. Scaravilli |
|
50,000 |
|
23,697 |
|
11,849 |
|
34 |
|
James A. Schoke Revocable Trust |
|
25,000 |
|
11,848 |
|
5,924 |
|
35 |
|
Mark Schwartz |
|
25,000 |
|
11,848 |
|
5,924 |
|
36 |
|
E. Donald Shapiro |
|
100,000 |
|
47,393 |
|
23,697 |
|
37 |
|
Howard Synenberg |
|
50,000 |
|
23,697 |
|
11,849 |
|
38 |
|
Lynn M. Taussig |
|
25,000 |
|
11,848 |
|
5,924 |
|
39 |
|
Oscar Zimmerman |
|
35,000 |
|
16,588 |
|
8,294 |
|
40 |
|
Capital Ventures International |
|
500,000 |
|
236,967 |
|
118,484 |
|
41 |
|
Castle Creek Healthcare Partners LLC |
|
250,000 |
|
118,483 |
|
59,242 |
|
42 |
|
Iroquos Master Fund Ltd. |
|
600,000 |
|
284,360 |
|
142,180 |
|
43 |
|
Nite Capital, LP |
|
250,000 |
|
118,483 |
|
59,242 |
|
44 |
|
Omicron Master Trust |
|
399,999 |
|
189,573 |
|
94,787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,371,829 |
|
1,598,020 |
|
799,020 |
|
1
EXHIBIT 10.2
PLACEMENT AGENT AGREEMENT
Oppenheimer &
Co. Inc. |
|
|
|
|
Member of All Principal Exchanges |
Placement Agent Agreement
February 15, 2005
Oppenheimer & Co. Inc.
125 Broad Street
New York, NY 10004
Dear Sirs:
The undersigned, Senesco Technologies, Inc., a Delaware corporation (the Company), hereby agrees (the Agreement) with Oppenheimer & Co. Inc. (Oppenheimer or Placement Agent) as follows:
1. Best Efforts Offering. The Company hereby engages Oppenheimer to act as its exclusive agent during the term of the offering as outlined herein to sell shares of Common Stock and Warrants (the Securities), on a best efforts basis (the Offering). Oppenheimer intends to market the Offering on the terms as set forth in the Term Sheet attached hereto as Exhibit A. The Securities shall be offered without registration under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the Act) pursuant to the exemption from registration created by Regulation D thereof.
2. Offering Documentation. The Company shall, as soon as practicable, prepare offering documentation (the Offering Documentation), which shall meet the anti-fraud and other requirements of the federal and state securities laws, be in form and substance reasonably satisfactory to the parties and include the Companys public documents, an executive summary (including offering terms), investment highlights, risk factors and appropriate updated information.
3. Compensation. Oppenheimer will be paid at closing of the Offering a cash commission of 7.0% of the aggregate amount of the proceeds received at closing for the Securities sold. In addition, Oppenheimer shall receive five year non-callable warrants to purchase such number of shares of the Companys Common Stock equal to 7.0% of the number of Securities sold hereunder, exercisable at 120% of the Market Price (as defined in the Term Sheet) at closing of the Offering.
Notwithstanding anything to the contrary herein, if, during the term of the Offering hereunder, the Placement Agent contacts an investor who closes on a purchase within twelve months after the close or termination of the Offering any securities of the Company in a private transaction, Oppenheimer shall be entitled to the compensation as outlined in this Paragraph 3. At closing, Oppenheimer will provide to the Company a list of investors contacted for the purpose of investing in the Offering.
4. Expenses. Whether or not the Offering is successfully completed, it shall be the Companys obligation to bear all of its expenses in connection with the proposed Offering. In addition, the Company shall reimburse Oppenheimer for its reasonable actual out of pocket expenses, including reasonable legal fees and disbursements up to a maximum aggregate amount of $35,000, of which $15,000 is payable to Oppenheimer upon execution of this agreement. At the closing or termination of the Offering, Oppenheimer will provide the Company with a detailed statement of expenses incurred in connection with the proposed Offering along with documentation for all individual expenses in excess of $500 and a detailed billing statement for legal fees and disbursements, at which time the Company will reimburse Oppenheimer for the difference between actual expenses incurred, not to exceed $35,000, and the $15,000 previously paid to Oppenheimer. In the event that expenses are less than $15,000,
Oppenheimer shall reimburse the Company for the difference between actual expenses incurred and the $15,000 previously paid to Oppenheimer.
5. Further Representations and Agreements of the Company. The Company further represents and agrees that (i) it is authorized to enter into this Agreement and to carry out the Offering contemplated hereunder and this Agreement constitutes a legal, valid and binding obligation of the Company, enforceable in accordance with its terms, (ii) the Company shall not issue any additional shares (other than shares pursuant to the exercise of warrants), options (other than pursuant to its existing stock option plan or successor plan covering no more securities than the existing plan) or warrants during the term of the Offering, (iii) the Company will, during the course of the Offering, provide Oppenheimer with all information and copies of documentation with respect to the Companys business, financial condition and other matters as Oppenheimer may reasonably deem relevant, including copies of all documents sent to stockholders or filed with any federal authorities, and will make reasonably available to Oppenheimer, its auditors, counsel, and officers and directors to discuss with Oppenheimer any aspect of the Company or its business which Oppenheimer may reasonably deem relevant, (iv) all executive officers and directors shall enter into a lock up agreement with Oppenheimer, in the form reasonable acceptable to all parties, in which they will agree not to sell any shares held by them under Rule 144 or otherwise for a period from the date hereof until the later of (y) six (6) months from the closing hereunder or (z) 90 days following the effective date of a Registration Statement (as defined below) in which the Securities are included, (v) the Company agrees that for a period of 90 days after the effectiveness of the Registration Statement, it shall not issue or sell any equity linked securities of the Company, unless the issuance or sale is related to a strategic transaction or an employee, consultant, supplier, lender, lessor or option grant or issuance (vi) the Company shall use its best efforts to file with the SEC an S-3 registration statement (the Registration Statement) for the Securities within 30 days of the Closing Date (defined as the date the Offering is priced and agreed to by investors) and the Company shall use its commercially reasonable efforts to cause such Registration Statement to be declared effective within 90 days of the Closing Date; if the Company does not file the Registration Statement within 30 days of the Closing Date or respond in writing to comments received from the Securities and Exchange Commission (the SEC) within 10 business days following receipt thereof, the Company shall pay the investors a cash penalty on a monthly basis of 1.5% for as long as the Registration Statement is not filed or comments from the SEC are not responded to in writing within 10 business days, and (vii) the Company will deliver at each closing of the Offering (a) a certificate of each of the Companys CEO and CFO to the effect that the Offering Documentation meets the requirements hereof and does not contain any untrue statement of material fact or fail to state any material fact required to be stated therein or necessary to make the statements therein not misleading and all necessary corporate approvals have been obtained to enable the Company to deliver the Securities in accordance with the terms of the Offering and (b) an opinion of counsel for the Company in customary form.
6. Indemnification. See Exhibit B attached hereto.
7. No-Shop Provision. Until the Offering contemplated hereby is closed or terminated, the Company agrees that it will not negotiate with any other person relating to a possible public or private offering or placement of the Companys securities. In addition, if during the Offering period the Company engages in discussions to be acquired, merge, sell all or substantially all of its assets or otherwise effect a corporate reorganization with any other entity and as a result the Offering is terminated, Oppenheimer shall be engaged as the Companys financial advisor on terms that are reasonable and customary for the size and nature of such a transaction.
8. Termination. The Company shall have the right to terminate the Offering in the event it is not completed within 30 days from the date of the Offering Documentation. The Company and Oppenheimer may terminate or extend the Agreement at any time by mutual written consent.
9. Competing Claims. The Company acknowledges and agrees that no entity has any claims or is entitled to any payments for services in the nature of a finders fee or any other arrangements, agreements, payments or understandings pursuant to this Offering.
10. Miscellaneous.
(a) Governing Law. This Agreement and the transactions contemplated hereby shall be governed in all respects by the laws of the State of New York, without giving effect to its conflict of laws principles.
(b) Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.
(c) Notices. Whenever notice is required to be given pursuant to this Agreement, such notice shall be in writing and shall either be (i) mailed by certified first class mail, postage prepaid, addressed (a) if to Oppenheimer, at the address set forth at the head of this Agreement, Attention: Kee Colen, Senior Vice President; and (b) if to the Company, at Senesco Technologies, Inc., Attention: Bruce C. Galton, President and CEO; or (ii) delivered personally or by express courier. The notice shall be deemed given, if sent by mail, on the third day after deposit in a United States post office receptacle, or if delivered personally or by express courier, then upon receipt.
(d) Dispute. In the event of any action at law, suit in equity or arbitration proceeding in relation to this Agreement or the transactions contemplated by this Agreement, the prevailing party, or parties, shall be paid its reasonable attorneys fees and expenses arising from such action, suit or proceeding by the other party.
If the foregoing correctly sets forth the understanding between Oppenheimer and the Company, please so indicate in the space provided below for that purpose whereupon this letter shall constitute a binding agreement between us.
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Very truly yours, |
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Senesco Technologies, Inc. |
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By: |
/s/ Bruce C. Galton |
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Bruce C. Galton |
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President and CEO |
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Confirmed and agreed to: |
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Oppenheimer & Co. Inc. |
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By: |
/s/ Kee Colen |
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Kee Colen |
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Senior Vice President |
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Date: |
March 3, 2005 |
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EXHIBIT 99.1
PRESS RELEASE
Company Contact: |
|
Investor Relations Contacts: |
Senesco Technologies, Inc. |
|
Lippert/Heilshorn & Associates |
(732) 296-8400 |
|
Kim Sutton Golodetz |
Joel Brooks |
|
(kgolodetz@lhai.com) |
Chief Financial Officer |
|
|
(jbrooks@senesco.com) |
|
(212) 838-3777 |
|
|
Bruce Voss |
|
|
(bvoss@lhai.com) |
|
|
(310) 691-7100 |
Senesco Technologies Raises $3.32 Million In Financing
NEW BRUNSWICK, N.J. (May 4, 2005) Senesco Technologies, Inc. (Senesco or the Company) (AMEX: SNT) has entered into definitive agreements in connection with a private placement of approximately 1.57 million units, comprised of one share of newly issued common stock and a warrant to purchase 0.50 of a share of common stock at an exercise price of $3.38 per share to institutional and other accredited investors. Aggregate proceeds to the Company are expected to be approximately $3.32 million, subject to closing conditions. The private placement is expected to close on or about May 6, 2005.
We are pleased to have been able to raise equity in this difficult market, commented Joel Brooks, Senescos Chief Financial Officer. We believe that this financing, along with our current working capital, will provide us with sufficient funds so that we can continue to execute our research and operating plans for approximately the next two years.
Oppenheimer & Co., Inc. acted as the placement agent for this transaction.
About Senesco Technologies, Inc.
Senesco takes its name from the scientific term for the aging of plant cells: senescence. The Company has developed technology that regulates cell life. Delaying cell breakdown in plants extends freshness after harvesting, while increasing crop yields and resistance to environmental stress for flowers, fruits and vegetables. The Company believes that its technology can be used to develop superior strains of crops without any modification other than delaying natural plant senescence. Senesco has undertaken preclinical research in certain areas of human health.
Accelerating apoptosis may have applications to development of cancer treatments. Delaying apoptosis may have applications to certain diseases such as glaucoma, ischemia and arthritis, among others. Senesco partners with leading-edge companies and earns research and development fees for applying its technology to enhance its partners products. Senesco is headquartered in New Brunswick, New Jersey, and utilizes research laboratories at universities and research centers throughout North America.
Certain statements included in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from such statements expressed or implied herein as a result of a variety of factors, including, but not limited to: the development of the Companys gene technology; the success and timing of the Companys studies and pre-clinical trials; the approval of the Companys patent applications; the successful implementation of the Companys research and development programs and joint ventures; the success of the Companys license agreements; the successful conversion of the Companys letter of intent into a license agreement; the acceptance by the market of the Companys products; competition and the timing of projects and trends in future operating performance, as well as other factors expressed from time to time in the Companys periodic filings with the Securities and Exchange Commission (the SEC). As a result, this press release should be read in conjunction with the Companys periodic filings with the SEC. The forward-looking statements contained herein are made only as of the date of this press release, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
# # #