Unassociated Document
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): November
27, 2007
Grant
Life Sciences, Inc.
(Exact
name of registrant as specified in its charter)
Nevada
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000-50133
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82-0490737
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(State
or other jurisdiction
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(Commission
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(I.R.S.
Employer
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of
incorporation)
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File
Number)
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Identification
No.)
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1787
East Ft. Union Blvd., Suite 202
Salt
Lake City, Utah
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84121
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant’s
telephone number, including area code: (801)
733-0878
Copies
to:
Gregory
Sichenzia, Esq.
Yoel
Goldfeder, Esq.
Sichenzia
Ross Friedman Ference LLP
1065
Avenue of the Americas
New
York,
New York 10018
Phone:
(212) 930-9700
Fax:
(212) 930-9725
Check
the
appropriate box below if the Form 8-K filing 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 Securities 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
To
obtain
funding for its ongoing operations, Grant Life Sciences, Inc. (the
“Company”) entered
into a Securities Purchase Agreement (the “Agreement”) with New Millennium
Capital Partners II, LLC, AJW Master Fund, Ltd. and AJW Partners, LLC
(collectively, the “Investors”) on November 27, 2007 for the sale of (i)
$400,000 in callable secured convertible notes (the “Notes”) and (ii) stock
purchase warrants (the “Warrants”) to buy 8,000,000 shares of our common stock.
On November 27, 2007, the Investors purchased $400,000 in Notes and received
Warrants to purchase 8,000,000 shares of the Company’s common stock. The Company
received net proceeds of $345,000.00, after deducting expenses of $55,000.00.
The
Notes
bear interest at 8%, mature three years from the date of issuance, and are
convertible into our common stock, at the Investors' option, at a conversion
price equal to the lower of (i) $0.15 or (ii) 60% of the average of the three
lowest intraday trading prices for our common stock during the 20 trading days
before, but not including, the conversion date. As of November 12, 2007, the
average of the three lowest intraday trading prices for our common stock during
the preceding 20 trading days as reported on the Over-The-Counter Bulletin
Board
was $0.018 and, therefore, the conversion price for the secured convertible
notes was $0.011. Based on this conversion price, the $400,000 Notes, excluding
interest, were convertible into 37,037,037 shares of our common stock.
We
may
prepay the Notes in the event that no event of default exists, there are a
sufficient number of shares available for conversion of the callable secured
convertible notes and the market price is at or below $.40 per share. The full
principal amount of the Notes is due upon default under the terms of Notes.
In
addition, we have granted the Investors a security interest in substantially
all
of our assets and intellectual property as well as registration rights.
The
Warrants are exercisable until seven years from the date of issuance at a
purchase price of $.05 per share. In addition, the exercise price of the
Warrants is adjusted in the event we issue common stock at a price below market.
The
Investors have contractually agreed to restrict their ability to convert the
Notes and exercise the Warrants and receive shares of our common stock such
that
the number of shares of the Company common stock held by them and their
affiliates after such conversion or exercise does not exceed 4.99% of the
Company’s then issued and outstanding shares of common stock.
Item
3.02 Unregistered
Sales of Equity Securities
The
Notes
and Warrants described in Item 1.01 were offered and sold to the Investors
in a
private placement transaction made in reliance upon exemptions from registration
pursuant to Section 4(2) under the Securities Act of 1933 and Rule 506
promulgated thereunder. Each of the Investors is an accredited
investor as defined in Rule 501 of Regulation D promulgated under the Securities
Act of 1933.
Item
9.01 Financial
Statements and Exhibits
Exhibit
No.
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Description
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10.1
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Securities
Purchase Agreement dated November 27, 2007 by and among the Company
and
New Millennium Capital Partners II, LLC, AJW Master Fund, Ltd. and
AJW
Partners, LLC
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10.2
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Form
of Callable Secured Convertible Note dated November 27,
2007
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10.3
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Form
of Stock Purchase Warrant dated November 27, 2007
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10.4
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Registration
Rights Agreement dated November 27, 2007 by and among the Company
and New
Millennium Capital Partners II, LLC, AJW Master Fund, Ltd. and AJW
Partners, LLC
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Security
Agreement dated November 27, 2007 by and among the Company and New
Millennium Capital Partners II, LLC, AJW Master Fund, Ltd. and AJW
Partners, LLC
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10.6
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Intellectual
Property Security Agreement dated November 27, 2007 by and among
the
Company and New Millennium Capital Partners II, LLC, AJW Master Fund,
Ltd.
and AJW Partners, LLC
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SIGNATURES
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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Grant
Life Sciences, Inc.
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Date:
November 29, 2007
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By:
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/s/
Doyle R. Judd
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Name:
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Doyle
R. Judd
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Title:
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Chief
Financial Officer
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