EXHIBIT 4.2
FORM OF WARRANT
THIS
WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY APPLICABLE STATE SECURITIES LAWS. THEY MAY NOT BE
SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION OF
COUNSEL SATISFACTORY TO PROUROCARE MEDICAL INC. THAT SUCH
REGISTRATION IS NOT REQUIRED.
WARRANT TO PURCHASE
COMMON STOCK
OF
PROUROCARE MEDICAL INC.
VOID AFTER DECEMBER 31, 2012
This Warrant is
issued to
[ ]
, or its registered assigns (“ Holder ”) by
ProUroCare Medical Inc. , a Nevada corporation (the “
Company ”), on [Insert date], 2008(1)
(the “ Warrant Issue Date ”) for a purchase
price of $[ ] (the “
Warrant Purchase Price ”). This Warrant is
issued pursuant to the terms of that certain Unit Purchase
Agreement dated as of
,
2008 (the “ Purchase Agreement ”) in connection
with the Company’s issuance to the Holder of a Convertible
Promissory Note dated as of the date hereof (the “
Note ”), in the original principal amount of
$ .
This Warrant is intended to be an investment warrant and is not
issued in consideration of any services.
1. Purchase of
Shares. Subject to the terms and
conditions hereinafter set forth and set forth in the Purchase
Agreement, the Holder is entitled, upon surrender of this Warrant
at the principal office of the Company (or at such other place as
the Company shall notify the holder hereof in writing), to purchase
from the Company up to
[ ]
fully paid and nonassessable shares of Common Stock of the Company,
as constituted on the Warrant Issue Date (the “ Common
Stock ”). The number of shares of Common Stock
issuable pursuant to this Section 1 (the “ Shares
”) shall be subject to adjustment pursuant to Section 8
hereof.
2.
Exercise
Price .
The purchase price
for the Shares shall be (a) equal to 50% of the per share
or other unit price at which equity securities are sold in the
Company’s Public Offering (as defined below) or, (b) in
the event that the Company fails to close the Public Offering prior
to [the
eighteen-month anniversary of the date of the Purchase
Agreement] (the “ Conversion
Date ”) , the per share purchase
price for the Shares shall be equal to 50% of the closing price of
the Common Stock on [the eighteen-month anniversary of the date of
the Purchase Agreement] . Such price is herein
referred to as the “ Exercise Price ”. For
purposes of this Warrant, “ Public Offering ”
shall mean an underwritten public offering of equity securities of
the Company.
1 The date of the
Purchase Agreement.
3. Exercise
Period. This Warrant shall become
exercisable, in whole or in part, commencing upon the earlier of
(i) the closing of the Public Offering or (ii) the
Conversion Date, and it shall remain so exercisable until
5:00 p.m., Minneapolis time, on December 31,
2012.
4. Method of
Exercise. While this Warrant remains
outstanding and exercisable in accordance with Section 3
above, the Holder may exercise, in whole or in part, the purchase
rights evidenced hereby. Such exercise shall be effected
by:
(a) the surrender of the Warrant,
together with a duly executed copy of the form of Notice of
Exercise attached hereto, to the Secretary of the Company at its
principal offices;
(b) the payment to the Company of a
cash amount equal to the aggregate Exercise Price for the number of
Shares being purchased; and
(c) the delivery of a subscription
agreement, an investment letter or similar document acceptable to
the Company demonstrating that the sale of Shares to be purchased
is exempt from registration under the Securities Act of 1933, as
amended (the “ Securities Act ”), and any
applicable state securities laws (unless a registration statement
covering the Shares being purchased shall have been declared
effective by the Securities and Exchange Commission).
5. Certificates for
Common Stock. Upon the exercise of the
purchase rights evidenced by this Warrant, one or more certificates
for the number of Shares so purchased shall be issued as soon as
practicable thereafter, bearing the restrictive legend set forth in
Section 12 of this Warrant, and in any event within 30 days of
the delivery of the subscription notice.
6. Intentionally
Omitted.
7. Issuance of
Shares . The Company
covenants that the Shares, when issued pursuant to the exercise of
this Warrant, will be duly and validly issued, fully paid and
nonassessable and free from all taxes, liens, and charges with
respect to the issuance thereof.
8. Adjustment of
Exercise Price and Number of Shares. The number of and
kind of securities purchasable upon exercise of this Warrant and
the Exercise Price shall be subject to adjustment from time to time
as follows:
(a) Subdivisions, Combinations
and Other Issuances . If the Company shall at any time
prior to the expiration of this Warrant subdivide its Common Stock,
by split-up or otherwise, or combine its Common Stock, or issue
additional shares of its Common Stock as a dividend with respect to
any shares of its Common Stock, the number of Shares issuable on
the exercise of this Warrant shall forthwith be proportionately
increased in the case of a subdivision or stock dividend, or
proportionately decreased in the case of a combination.
Appropriate adjustments shall also be made to the purchase price
payable per share, but the aggregate purchase price payable for the
total number of Shares purchasable under this Warrant (as adjusted)
shall remain the same. Any adjustment under this
Section 8(a) shall become effective at the close of
business on the date the subdivision or combination becomes
effective, or as of the record date of such dividend, or in the
event that no record date is fixed, upon the making of such
dividend.
2
(b) Reclassification,
Reorganization, Consolidation, Merger and Other Changes .
In case of any reclassification, capital reorganization or change
in the Common Stock of the Company (other than as a result of a
subdivision, combination, or stock dividend provided for in
Section 8(a) above), or consolidation or merger of the
Company with or into another corporation, or the sale of all or
substantially all of its assets to another corporation shall be
effected in such a way that holders of the Company’s Common
Stock shall be entitled to receive stock, securities or assets with
respect to or in exchange for such Common Stock, then, as a
condition of such reclassification, reorganization, change,
consolidation, merger or sale, lawful provision shall be made, and
duly executed documents evidencing the same from the Company or its
successor shall be delivered to the Holder, so that the Holder
shall have the right at any time prior to the expiration of this
Warrant to purchase, at a total price equal to that payable upon
the exercise of this Warrant, the kind and amount of shares of
stock and other securities and property receivable in connection
with such reclassification, reorganization, change, consolidation,
merger or sale by a holder of the same number of shares of Common
Stock as were purchasable by the Holder immediately prior to such
reclassification, reorganization, change, consolidation, merger or
sale. In any such case appropriate provisions shall be made
with respect to the rights and interest of the Holder so that the
provisions hereof shall thereafter be applicable with respect to
any shares of stock or other securities and property deliverable
upon exercise hereof, and appropriate adjustments shall be made to
the purchase price per share payable hereunder, provided the
aggregate purchase price shall remain the same.
(c) Minimum Adjustment
. Notwithstanding anything herein to the contrary, no
adjustment under this Section 8 need be made to the Exercise
Price unless such adjustment would require an i
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