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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) October 4, 2000
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Generex Biotechnology Corporation
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(Exact name of registrant as specified in its charter)
Delaware 000-25169 82-049021
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(State or other jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
33 Harbor Square, Suite 202, Toronto, Ontario Canada M5J 2G2
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 416/364-2551
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
On October 4, 2000, we completed the sale of 2,137,456 units
of securities ("Units") for cash at a price of $11.00 per Unit. Each Unit
consisted of a share of Common Stock and a warrant to purchase .15 shares of
Common Stock at an initial exercise price of $13.20 per share. The purchasers of
the Units were:
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Purchaser Units Purchased Consideration ($)
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Smallcap World Fund Inc. 1,079,000 $11,869,000
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Protius Overseas Limited 163,636 $1,800,000
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Montrose Investments Ltd. 136,363 $1,500,000
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Ram Trading Ltd. 125,000 $1,375,000
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Nob Hill Capital Partners, L.P. 100,000 $1,100,000
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Castle Creek Healthcare Partners LLC 90,910 $1,000,010
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AEOW 2000 L.P. 68,182 $750,002
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Willow Creek Capital Partners, L.P. 50,000 $550,000
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Kodiak Opportunity Offshore Ltd. 49,590 $545,490
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Fidelity National Title Insurance Co. 45,455 $500,000
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Velocity Investment Partners LTD 45,455 $500,000
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Prism Partners 1, L.P. 40,800 $448,800
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Kodiak Opportunity, L.P. 33,520 $368,720
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CCL Fund LLC 22,728 $250,008
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Prism Partners II Offshore Fund 20,400 $224,400
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Nob Hill Capital Partners, L.P. 20,000 $220,000
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Kodiak Opportunity 3C7, L.P. 16,890 $185,790
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Ascend Partners L.P. 13,637 $150,010
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Ascend Offshore Funds Ltd. 9,090 $99,990
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Prism Partners Offshore Fund 6,800 $74,800
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The above figures do not include an additional 68,800 Units
that Smallcap World Fund, Inc. ("Smallcap") may purchase pursuant to an option
contained in its purchase agreement. The option authorizes Smallcap to purchase
6.5% of the number of units purchased by all investors other than Smallcap. This
option expires on October 18, 2000.
The Shemano Group, Inc. ("Shemano"), a broker-dealer, has
received or will be receiving compensation for its services in connection with
this placement, including cash compensation of approximately $1,645,000 (7% of
total placement proceeds) and warrants to purchase a total of 213,745 shares of
Common Stock (10% of total number of shares included in the Units sold). If
Smallcap exercises its option to purchase an additional 68,800 Units as
described in the preceding paragraph, the compensation to Shemano will be
increased by approximately $53,000 and 10,320 warrants.
Shemano has advised us that it intends to assign its warrants
to two of its officers, Gary J. Shemano and William Corbett. The Shemano
warrants are identical to the warrants issued to investors.
The Units were sold without registration under the Securities
Act of 1933 in reliance upon the exemption from registration provided in Section
4(2) thereof and Rule 506, Regulation D promulgated thereunder. No general
solicitation was made in connection with the placement. All securities sold were
acquired for investment, and appropriate restrictions have been placed upon the
resale of any of the securities acquired in the placement, including restrictive
legends on the face of the securities and stop orders on our stock and warrant
registers.
The warrants issued to the placement investors and Shemano
expire on September 29, 2005, and contain anti-dilution and other terms that are
commonly found in such securities. A form of the warrants issued has been filed
as an exhibit with this Report.
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Item 6. Exhibits and Reports on Form 8-K
Exhibit Exhibit Table
1. Securities Purchase Agreement entered into with Smallcap World
Fund, Inc., dated September 29, 2000.
2. Form of Securities Purchase Agreement entered into with Protius
Overseas Limited; Ascend Partners L.P.; Ascend Offshore Fund,
Ltd.; AEOW 2000, L.P.; Willow Creek Capital Partners, L.P.;
Velocity Investment Partners, LTD; Kodiak Opportunity Offshore,
Ltd.; Kodiak Opportunity, 3C7, L.P.; Kodiak Opportunity, L.P.;
Nob Hill Capital Partners, L.P.; Prism Partners 1, L.P.; Prism
Partners II Offshore Fund; Prism Partners Offshore Fund; Montrose
Investments, Ltd.; Ram Trading, Ltd.; Fidelity National Title
Insurance Co.; Castle Creek Healthcare Partners, LLC; and CCL
Fund, LLC, between September 29, 2000 and October 4, 2000.
3. Form of Registration Rights Agreement entered into with Protius
Overseas Limited; Ascend Partners L.P.; Ascend Offshore Fund,
Ltd.; AEOW 2000, L.P.; Willow Creek Capital Partners, L.P.;
Velocity Investment Partners, LTD; Kodiak Opportunity Offshore,
Ltd.; Kodiak Opportunity, 3C7, L.P.; Kodiak Opportunity, L.P.;
Nob Hill Capital Partners, L.P.; Prism Partners 1, L.P.; Prism
Partners II Offshore Fund; Prism Partners Offshore Fund; Montrose
Investments, Ltd.; Ram Trading, Ltd.; Fidelity National Title
Insurance Co.; Castle Creek Healthcare Partners, LLC; CCL Fund,
LLC; The Shemano Group, Inc. and Smallcap World Fund, Inc., dated
between September 29, 2000 and October 4, 2000.
4. Form of Warrant issued to Protius Overseas Limited; Ascend
Partners L.P.; Ascend Offshore Fund, Ltd.; AEOW 2000, L.P.;
Willow Creek Capital Partners, L.P.; Velocity Investment
Partners, LTD; Kodiak Opportunity Offshore, Ltd.; Kodiak
Opportunity, 3C7, L.P.; Kodiak Opportunity, L.P.; Nob Hill
Capital Partners, L.P.; Prism Partners 1, L.P.; Prism Partners II
Offshore Fund; Prism Partners Offshore Fund; Montrose
Investments, Ltd.; Ram Trading, Ltd.; Fidelity National Title
Insurance Co.; Castle Creek Healthcare Partners, LLC; CCL Fund,
LLC; The Shemano Group, Inc. and Smallcap World Fund, Inc. in the
October 4, 2000 Units Placement.
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.
GENEREX BIOTECHNOLOGY CORPORATION
Dated: October 13, 2000 By:/s/E. Mark Perri
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E. Mark Perri, Chairman and CFO
