Aeolus Pharmaceuticals Inc. (OTCPK:AOLS) announced that it has entered into securities purchase agreements for a private placement of 10,215,274 common units at a purchase price of $0.22 per unit and 4,500 preferred stock units at a purchase price of $1,000,000 per unit for total gross proceeds of $6,747,360.28 on December 10, 2015. The transaction included participation from existing investor, Biotechnology Value Fund L.P., a fund managed by BVF Partners LP which will purchase the preferred stock units for $4,500,000. Other existing and new accredited investors will purchase the common units for $2,247,360.28.

A total of 43 investors participated in the transaction. Each common unit consists of one common share and a five year warrant to purchase one share of the company's common stock. The preferred units collectively consist of 4,500 shares of series C convertible preferred stock of the company that are collectively convertible into an aggregate of 20,454,546 common shares at a conversion price of $0.22 and warrants to purchase 20,454,546 common shares.

The warrants have an initial exercise price of $0.22 per share. The warrants may not be exercised until after 90 days following the date of issuance. The series C stock and warrants contain provisions restricting the conversion or exercise of such securities in circumstances where such event would result in the holder and its affiliates to beneficially own in excess of 9.99% of the company's outstanding common stock.

The company issued the securities pursuant to exemption provided under Regulation D.