Item 1.01 Entry into a Material Definitive Agreement.
Securities Purchase Agreement with
On
The Note obligates the Company to pay by
The Lender has the right, in its discretion, at any time, to convert any
outstanding and unpaid amount of the Note into shares of Common Stock, provided
that the conversion would not result in the Lender beneficially owning more than
4.99% of the Company's then outstanding Common Stock. The Lender may convert at
a per share conversion price equal to
The Company may, in the absence of an Event of Default (as defined in the Note),
and with prior written notice to the Lender, prepay the outstanding principal
amount under the Note during the initial 180 day period after the Effective Date
by making a payment to the Lender of an amount in cash equal to 115% of the
outstanding principal, interest, default interest and other amounts owed. Under
certain circumstances, including the occurrence of an Event of Default, a sale,
merger or other business combination where the Company is not the survivor, or
the conveyance or disposition of all or substantially all of the assets of the
Company, the Company may be required to prepay in cash an amount equal to 125%
of the outstanding principal, interest, default interest and other amounts owed.
The Company's wholly owned subsidiary,
The Note requires that the Company reserve the greater of (i) 26,602,500 shares of Common Stock or (ii) three times the number of shares into which the Note may convert. The Warrant similarly requires that the Company reserve three times the number of shares into which the Warrant is at any time exercisable.
The SPA includes, among other things: (1) the grant of an option to the Lender
to incorporate into the Note any terms applicable to a subsequent issuance of a
convertible note or security by the Company that are more beneficial to an
investor than the terms of the SPA and Note are to the Lender; and (2) certain
registration rights by reference to the Registration Rights Agreement, and the
right to have any shares of Common Stock issued in connection with the
conversion of the Note or exercise of the Warrant included in any Regulation A
offering statement that the Company files with the
The Note, the Warrant, and the shares of Common Stock issuable upon conversion
or exercise thereof, as applicable, were offered and sold to the Lender in
reliance upon specific exemptions from the registration requirements of
The descriptions of the SPA, the Registration Rights Agreement, the Note, and the Warrant do not purport to be complete and are qualified in their entirety by reference to the SPA, the Registration Rights Agreement, the Note, and the Warrant, which are included as Exhibits 99.1, 99.2, 99.3, and 99.4, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.
Extension of Royalty Obligation under the 2014 License Agreement with the
The Company is party to the Exclusive License Agreement, dated as of
On
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information provided in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.
Item 3.02 Unregistered Sales of
The information provided in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 3.02.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits. Exhibit No. Exhibit Description 99.1 Securities Purchase Agreement, datedMarch 31, 2021 , betweenRespireRx Pharmaceuticals Inc. andEMA Financial, LLC . 99.2 Piggy-Back Registration Rights Agreement, datedMarch 31, 2021 , betweenRespireRx Pharmaceuticals Inc. andEMA Financial, LLC . 99.3 10% Convertible Note, datedMarch 31, 2021 . 99.4 Common Stock Purchase Warrant, datedMarch 31, 2021 .
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.
Date:
(Registrant) By: /s/Jeff E. Margolis Jeff E. Margolis SVP, CFO, Secretary and Treasurer
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