The company also issued warrants to purchase 12.5 million shares of common stock to the investor.
The preferred stock, designated as Series A Preferred Stock, accrues dividends, payable quarterly, at a rate of 5% per annum on the amount invested, payable, in the company's discretion subject to customary restrictions, in cash or common stock. The preferred stock has a liquidation preference of 120% of the amount invested. The company has certain obligations to redeem preferred stock upon the occurrence of certain events, and as to half of the shares over time, and the right to force a conversion of the preferred stock under certain conditions.
"This financing is an important milestone for the company," said Mordechai Bignitz, CEO of OWC Pharmaceutical Research. "It enables us to continue to invest in the research and development of our products and to progress our clinical development, which is key to the uniqueness of our company. With this financing, we can also consolidate our movement to commercialization of our first products. We are also very happy to strengthen the institutional presence amongst our shareholders."
About OWC Pharmaceutical Research Corp.
OWC Pharmaceutical Research Corp., through its wholly-owned Israeli subsidiary, One World Cannabis Ltd., (collectively 'OWC' or the 'Company') conducts medical research and clinical trials to develop cannabis-based pharmaceuticals and treatments for conditions including multiple myeloma, psoriasis, fibromyalgia, PTSD, and migraines.
OWCP is also developing unique delivery systems for the effective delivery and dosage of medical cannabis. All OWCP research is conducted at leading Israeli hospitals and scientific institutions and led by internationally renowned investigators. The Company's Research Division is focused on pursuing clinical trials evaluating the effectiveness of cannabinoids and cannabis-based products for the treatment of various medical conditions, while its Consulting Division is dedicated to helping governments and companies navigate complex international cannabis regulatory frameworks.