MetaStat, Inc. announced that it has entered into a security purchase agreement with a number of institutional and accredited investors for a private placement of $7,000,000 on June 23, 2017. The company will issue shares at a price of $1.15 per share. The transaction is expected to close on July 31, 2017. The securities offered and sold in the transaction are pursuant to an exemption from the registration requirements under Section 4(a)(2) of the securities act and Rule 506 of Regulation D. For the benefit of certain investors whose ownership is in excess of 4.99% or 9.99%, the company may issue series A-2 convertible preferred stock in lieu of issuing common shares. Each of the preferred shares is convertible into 10 shares of common stock. On the same day the company issued 570,870 shares and 196,216 series A-2 convertible preferred stock for gross proceeds of $2,140,000 in its first tranche from 14 investors. The company received net proceeds of $2,000,000 after deducting placement agent fees and other offering expenses.