Quarterly report pursuant to Section 13 or 15(d)

Private Equity Offerings

Private Equity Offerings
9 Months Ended
Feb. 28, 2019
Private Securities Offerings
Note 10 – Private Equity Offerings
During the nine months ended February 28, 2019, the Company conducted a private equity offering, in which accredited investors purchased unregistered common stock at $0.50 per share with warrant coverage rate of 50%. Pursuant to the offering, the Company sold a total of 46,975,170 shares of common stock, $
par value, for aggregate gross proceeds of approximately $23.5 million and issued to the investors five-year warrants covering 23,487,585 shares of common stock with an exercise price of $0.75 per share. In addition, the placement agent received warrants covering 4,446,917 shares of common stock (or 10% of total shares sold to investors) with a per share exercise price of $
, a five-year term and include a cashless exercise provision. The Company also paid a one-time non-accountable expense fee of $
to the placement agent for its services in connection with the offering.