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ROCKVILLE, Md.—RegeneRx Biopharmaceuticals (OTCQB: RGRX), a clinical-stage drug development company focused on tissue protection, repair and regeneration, announced that it has completed a $500,000 convertible debt financing. The funds will be used for operations while awaiting completion of its phase 3 dry eye clinical trial (ARISE-3) in December and sponsored by ReGenTree, its U.S. joint venture with GtreeBNC Co., a bio venture company in Korea, the company said in a statement. The five-year unregistered convertible notes carry a 5 percent simple interest rate that accrues during the term.

The note is convertible into 1,391,982 shares of RGRX common stock at $0.36 per share. As part of the transaction, the note holders received warrants to purchase 1,043,987 shares of RGRX common stock at a price of $0.45 per share. There were no brokerage fees associated with the transaction.

"This limited financing demonstrates continued support from our affiliates, management and board of directors, among others, and provides RegeneRx with essential funding with minimal dilution to our stockholders while we await the results of ARISE-3. We look forward to reporting the results as soon as practicable after completion of the trial in December," stated J.J. Finkelstein, president and chief executive officer of RegeneRx.