Item 1.01. Entry into a Material Definitive Agreement.
On May 3, 2022, Creative Medical Technology Holdings, Inc. (the "Company")
completed the sale of (i) 2,991,669 shares of the Company's common stock (the
"Common Stock"), and pre-funded warrants to purchase 4,563,887 shares of Common
Stock (the "Pre-Funded Warrants"), and (ii) accompanying warrants to purchase
15,111,112 shares of Common Stock (the "Common Warrants"), at a combined
offering price of $2.25 per share of Common Stock/Pre-Funded Warrant and related
Common Warrant, to a group of institutional investors (the "Purchasers"),
pursuant to a Securities Purchase Agreement between the Company and the
Purchasers dated as of April 29, 2022 (the "Purchase Agreement"), resulting in
gross proceeds to the Company of approximately $17,000,000. The transaction was
effected pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended
and Rule 506(b) promulgated thereunder.
The Common Warrants have a five-year term, and an exercise price of $2.00 per
share. The Pre-Funded Warrants do not expire, and have an exercise price of
$0.0001 per share.
Roth Capital Partners ("Roth"), acted as sole placement agent for the offering.
The Company paid Roth a placement agent fee in the amount $1,360,000, and issued
Roth a warrant to purchase 1,133,333 shares of Common Stock with the same terms
as the Common Warrants issued to the Purchasers.
Pursuant to the Purchase Agreement, the Company and the Purchasers entered into
a Registration Rights Agreement (the "Registration Rights Agreement"), pursuant
to which the Company has agreed to file a registration statement (the
"Registration Statement") with the Securities and Exchange Commission to
register the resale of the shares of Common Stock issued in the offering and the
shares of Common Stock underlying the Common Warrants and Pre-Funded Warrants.
In addition, the Company's directors and officers entered into Lock-Up
Agreements under which they have agreed not to sell any of their securities of
the Company until 90 days following after the earliest of (i) the effective date
of the Registration Statement, and (ii) the date all of the securities issued in
the offering have been sold under Rule 144, or may be sold under Rule 144
without the Company being in compliance with the current public information
requirement under such rule, and without any volume limitation.
The information set forth above is qualified in its entirety by reference to the
actual terms of the Purchase Agreement, the Registration Rights Agreement, the
Pre-Funded Warrants and the Common Warrants, which are filed as Exhibits 10.1,
10.2, 4.1 and 4.2, respectively, and which are incorporated herein by reference.
Item 3.02. Unregistered Sales of Equity Securities.
The information set forth under Item 1.01 is incorporated herein by reference.
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Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Form of Pre-Funded Common Stock Purchase Warrant issued under
4.1 Securities Purchase Agreement dated as of April 29, 2022 between
Creative Medical Technology Holdings, Inc. and the purchasers named
therein
Exhibit Form of Common Stock Purchase Warrant issued under Securities
4.2 Purchase Agreement dated as of April 29, 2022 between Creative Medical
Technology Holdings, Inc. and the purchasers named therein
Exhibit Securities Purchase Agreement dated as of April 29, 2022 between
10.1 Creative Medical Technology Holdings, Inc. and the purchasers named
therein
Exhibit Registration Rights Agreement dated as of April 29, 2022 between
10.2 Creative Medical Technology Holdings, Inc. and the purchasers named
therein
Exhibit Cover Page Interactive Data File (embedded within the Inline XBRL
104 document)
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