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) June 9, 1998
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MEDICAL DISCOVERIES, INC.
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(Exact name of registrant as specified in its charter)
Utah 0-12627 87-0407858
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(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
2985 North 935 East, Suite 9, Layton, UT 84041
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(Address of principal executive offices) (Zip Code)
(801) 771-0523
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(Registrant's telephone number, including area code)
N/A
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(Former name, former address and former fiscal year, if changed since last
report)
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ITEM 5. OTHER EVENTS. ADDITIONAL FUNDING CLOSED THROUGH A PRIVATE PLACEMENT.
On June 9, 1998, Medical Discoveries, Inc. (the "Company" or "MDI")
announced it had closed additional funding through a private placement with a
group of private investors consisting primarily of U.S.-based medical doctors
representing a variety of specialities in multiple group practices. The total
investment package provides for funding of $3,500,000 and issuance of 4,000,000
shares of common stock for an average aggregate purchase price $.875 per share.
The initial and secondary rounds of funding are for $300,000 and $450,000
respectively at $0.75 per share, with the first round of funding having closed
on June 9, 1998 and the second round of funding scheduled to be closed before
July 31, 1998. The investor group also received warrants to acquire an
additional 2,000,000 shares of common stock at prices ranging from $0.75 per
share to $1.50 per share. The Company was assisted in this offering by an
investment consulting group who will be paid for its consulting services through
issuance of 300,000 shares of common stock at $0.001 per share. The investment
consulting group also received warrants to acquire an additional 1,000,000
shares of common stock at prices ranging from $0.50 per share to $0.75 per
share. Representatives of the investor group and the Company will work to
determine a mutually agreeable schedule for subsequent rounds of funding.
In addition to the capital investment, the group of physician investors
has obtained exclusive limited distribution rights for certain domestic and
international markets related to some of the Company's own proprietary products
and products from its joint venture agreements, subject to the group meeting
reasonable minimum volume levels.
The Company intends to use these funds to pursue FDA approvals for its
MDI-P compound targeted at anti-bacterial, anti-fungal and anti-viral (HIV/AIDS)
applications and for business development purposes for the Company's recently
announced joint venture opportunities.
Date: June 9, 1998
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MEDICAL DISCOVERIES, INC.
/s/ Lee F. Kulas
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President and Chief Executive Officer
