|9 Months Ended|
Sep. 30, 2019
7. Subsequent Events
In October 2019, we completed an underwritten public offering (the “Public Offering”) pursuant to which we issued 40,276,000 units at an offering price of $0.225 per unit, consisting of 35,886,000 shares of our common stock and pre-funded warrants to purchase 4,390,000 shares of our common stock with an exercise price of $0.01 per share (the “Pre-funded Warrants"), and Class B Warrants to purchase 40,276,000 shares of our common stock at $0.225 per share (the “Class B Warrants”). The Pre-Funded Warrants, which were exercised for common stock in October 2019, were issued in lieu of common stock in order to ensure the Purchaser did not exceed certain beneficial ownership limitations. The Class B Warrants are immediately exercisable and will expire in October 2024. The Class B Warrant agency agreement contains a provision where the warrant holder has the option to receive cash equal to the Black Scholes fair value of the remaining unexercised portion of the warrant in the event that there is a fundamental transaction (contractually defined to include various merger, acquisition or stock transfer activities). Through the date of filing this Quarterly Report on Form 10-Q, we received net cash proceeds of approximately $8.1 million, after deduction of underwriting fees and other offering expenses.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef