NEXGEL (NXGL) director buys $1M convertible note and stock warrant
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
NEXGEL director Brian Joseph Kieser bought a $1,000,000 Convertible Promissory Note and received a large stock warrant as part of the same financing. The Note can be converted into up to 1,666,667 shares of common stock at $0.60 per share. The warrant is exercisable for 833,334 shares at $0.80 per share. Both instruments are convertible or exercisable at the holder’s option but are subject to a 4.99% beneficial-ownership limitation on NEXGEL’s outstanding common stock.
Positive
- None.
Negative
- None.
Insider Trade Summary
Net Buyer: 2,500,001 shares ($1,000,000)
Net Buy
2 txns
Insider
Kieser Brian Joseph
Role
null
Bought
2,500,001 shs ($1.00M)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Purchase | Convertible Promissory Note (the "Note") | 1,666,667 | $0.60 | $1.00M |
| Purchase | Warrant to Purchase Common Stock (the "Warrant") | 833,334 | $0.00 | -- |
Holdings After Transaction:
Convertible Promissory Note (the "Note") — 1,666,667 shares (Direct, null);
Warrant to Purchase Common Stock (the "Warrant") — 833,334 shares (Direct, null)
Footnotes (1)
- Reflects the issuance to the Reporting Person of (i) a Convertible Promissory Note in the original principal amount of $1,000,000 (the "Note") and (ii) a Warrant to Purchase Common Stock for 833,334 shares of the Issuer's common stock (the "Common Stock") (the "Warrant"). The Note is convertible into up to 1,666,667 shares of Common Stock at an initial conversion price of $0.60 per share, and the Warrant is exercisable for 833,334 shares of Common Stock at an initial exercise price of $0.80 per share. The Note is convertible, and the Warrant is exercisable, at any time at the option of the holder, subject to (i) a beneficial-ownership limitation that prevents conversion or exercise to the extent the holder, together with its affiliates, would beneficially own more than 4.99% of the outstanding shares of Common Stock after such conversion or exercise, and (ii) certain other limitations set forth in the Note and Warrant. The Warrant was issued to the Reporting Person in connection with, and as part of the consideration for, the Reporting Person's purchase of the Note, for no additional consideration beyond the Note purchase price.
Key Figures
Convertible Note principal: $1,000,000
Note conversion price: $0.60 per share
Shares from Note: 1,666,667 shares
+5 more
8 metrics
Convertible Note principal
$1,000,000
Original principal amount of the Note
Note conversion price
$0.60 per share
Initial conversion price into common stock
Shares from Note
1,666,667 shares
Maximum common shares issuable on Note conversion
Warrant shares
833,334 shares
Common shares underlying the Warrant
Warrant exercise price
$0.80 per share
Initial exercise price of the Warrant
Beneficial-ownership limit
4.99%
Cap on post-conversion/exercise ownership of common stock
Total underlying shares
2,500,001 shares
Combined maximum from Note and Warrant
Warrant term
Until 2031-05-11
Warrant expiration date
Key Terms
Convertible Promissory Note, Warrant to Purchase Common Stock, initial conversion price, initial exercise price, +1 more
5 terms
Convertible Promissory Note financial
"Reflects the issuance to the Reporting Person of (i) a Convertible Promissory Note in the original principal amount of $1,000,000"
A convertible promissory note is a loan a company takes now that can later be turned into shares instead of being repaid in cash. Think of it as lending money with the option to accept ownership in the business down the road; that matters to investors because it affects who gets paid first, how much ownership existing shareholders keep, and the company’s future valuation and cash needs. Terms such as conversion price, interest and maturity determine the financial impact.
Warrant to Purchase Common Stock financial
"and (ii) a Warrant to Purchase Common Stock for 833,334 shares of the Issuer's common stock"
initial conversion price financial
"The Note is convertible into up to 1,666,667 shares of Common Stock at an initial conversion price of $0.60 per share"
initial exercise price financial
"and the Warrant is exercisable for 833,334 shares of Common Stock at an initial exercise price of $0.80 per share"
beneficial-ownership limitation regulatory
"subject to (i) a beneficial-ownership limitation that prevents conversion or exercise to the extent the holder"
FAQ
What did NEXGEL (NXGL) director Brian Joseph Kieser buy in this Form 4?
Brian Joseph Kieser acquired a $1,000,000 Convertible Promissory Note and a related stock warrant. The Note and Warrant together are linked to up to 2,500,001 NEXGEL common shares through conversion and exercise features, subject to ownership limits.
What are the conversion and exercise prices in this NEXGEL (NXGL) insider deal?
The Convertible Promissory Note has an initial conversion price of $0.60 per NEXGEL share. The Warrant carries an initial exercise price of $0.80 per share. These fixed prices define how many shares the director can receive for the invested capital.
Is there an ownership cap on Brian Joseph Kieser’s NEXGEL (NXGL) Note and Warrant?
Yes. Both the Note and Warrant include a 4.99% beneficial-ownership limitation. This prevents conversions or exercises that would leave the holder and affiliates owning more than 4.99% of NEXGEL’s outstanding common stock after the transaction.
Was the NEXGEL (NXGL) Warrant purchased separately from the Note?
No. The Warrant was issued as part of the consideration for purchasing the $1,000,000 Convertible Promissory Note. The footnote states it was received for no additional consideration beyond the Note’s purchase price, effectively bundling the instruments.