Parnell Pharmaceuticals Holdings Ltd. (NasdaqGM:PARN) announced that it has entered into a purchase agreement for an equity line transaction with new accredited investor Lincoln Park Capital Fund, a fund managed by Lincoln Park Capital for gross proceeds of $15,000,000 on January 11, 2016. The company has the right over a 36-month period to sell shares of common stock to the investor commencing on the date that a registration statement, which the company agreed to file with the Securities and Exchange Commission pursuant to the registration rights agreement, is declared effective by the Securities and Exchange Commission and a final prospectus in connection is filed. The company has the right and sole discretion to elect to sell to the investor up to 35,000 ordinary shares on any business day and subject to certain conditions, including the closing price of the stock, can elect to sell up to 55,000 shares on any one day.

The company can only sell up to a maximum of $500,000 of shares on any one day. If the company elects to sell shares under the agreement, the investor is obligated to purchase such shares. The purchase price of the shares related to the future funding will be the lower of the lowest trade price on that day or the average of the three lowest closing prices for the previous 12 days.

The transaction may be terminated by the company at any time at its discretion without any cost to the company. The company issued 47,746 shares as commitment fee to the investor. The company agreed to issue 175,000 common shares to the investor.