EQUITY TRANSACTIONS |
12 Months Ended | |||
|---|---|---|---|---|
Apr. 30, 2022 | ||||
| Equity [Abstract] | ||||
| EQUITY TRANSACTIONS |
The Company is authorized to issue shares of Preferred Stock $ par value. The Board has designated shares as the Series A Preferred Shares. The rights, preferences, privileges and restrictions on the remaining authorized shares of Preferred Stock have not been determined. The Board is authorized to create a new series of preferred shares and determine the number of shares, as well as the rights, preferences, privileges and restrictions granted to or imposed upon any series of preferred shares.
Series A Preferred Shares
In connection with the closing of the IPO, all of the outstanding Series A Preferred Shares were converted into shares of common stock. As of April 30, 2022, there were no Series A Preferred Shares or other shares of Preferred Stock issued or outstanding.
Common Stock
On April 30, 2019, the Company and ALSF entered into a securities purchase agreement for the purchase of shares of common stock for a total purchase price of $, or $ per share with warrants with a -year life and an exercise price of $3.00 per share and vesting upon issuance. The total purchase price of $ was in the form of a non-interest bearing note receivable with a -month term from ALSF, a related party. The note is secured by a pledge of the purchased shares. Pursuant to the securities purchase agreement, ALSF is entitled to full ratchet anti-dilution protection, most-favored nation status, denying the Company the right to enter into a variable rate transaction absent its consent, a right to participate in any future financing the Company may consummate and to have all the shares of common stock to which it is entitled to under the SPA registered under the Securities Act within 180 days of the final closing of IPO. In May 2021, the term of the note receivable was extended to December 31, 2023. The note is secured by a pledge of the purchased shares.
In March 2021, the Company entered into the SPA with DPL pursuant to which the Company agreed to sell an aggregate of shares of common stock for an aggregate of $10 million, or $ per share, which sales were made in tranches. On March 9, 2021, DPL paid $4 million, less the $1.8 million in prior advances and the surrender for cancellation of a $ convertible promissory note held by BitNile, for an aggregate of shares of common stock. Under the terms of the SPA, DPL (i) purchased an additional 1,333,333 shares of common stock upon approval by the FDA of the Company’s IND for its Phase IA clinical trials for AL001 for a purchase price of $2 million; and (ii) purchased 2,666,667 shares of Common Stock upon the completion of these Phase IA clinical trials for AL001 for a purchase price of $4 million. In addition, the Company issued DPL warrants to purchase an aggregate of 6,666,667 shares of common stock at an exercise price of $3.00 per share.
Finally, the Company agreed that for a period of 18 months following the date of the payment of the final tranche of $4 million, DPL will have the right to invest an additional $10 million on the same terms, except that no specific milestones have been determined with respect to the additional $10 million as of the date of this Annual Report.
On June 17, 2021, the Company sold an aggregate of shares of common stock, including shares pursuant to the underwriter’s exercise of its option to purchase additional shares, each at an offering price of $ per share, for aggregate gross proceeds of approximately $14.4 million. The proceeds from the offering to the Company, net of underwriting discounts and commissions and offering expenses, were $12.9 million. DPL also purchased shares of common stock for $10.0 million in the initial public offering at $ per share, the same price and on the same terms as other investors in the initial public offering, except that a reduced underwriting discount was paid to the underwriters for the sale of common stock to DPL. |