Xenetic Biosciences, Inc. (OTCPK:XBIO) announced a private placement of bridge note financing for gross proceeds of $3,500,000 with existing investor, OJSC Pharmsynthez on November 13, 2015. The company entered into securities purchase agreement with the investor. The company will issue 10% senior secured collateralized convertible promissory note due October 1, 2016. The company will pay fixed interest at the rate of 10% per annum, payable quarterly. The note is convertible into in whole or in part, into common shares of the company at fixed conversion price of $0.15. The company also issued 11,666,667 five year warrants to purchase common shares of the company at a price of $0.20 or 120% of the capital raise price for a period of five years at any time after March 31, 2016. The company expects to receive funding in four tranches. The company will receive $1,000,000 in its first tranche closing within the five business days following the execution of agreement. The company will receive $1,000,000 within five business days on or after December 1, 2015 but no later than December 31, 2015 in its second tranche closing. The company will receive $500,000 within five business days on or after November 1, 2015 but no later than November 30, 2015 in its third tranche closing, and $1,000,000 in its fourth tranche closing on or after February 1, 2016 but no later than February 28, 2016. All overdue accrued and unpaid interest to be paid hereunder shall entail a late fee at an interest rate equal to the lesser of 18% per annum or the maximum rate permitted by applicable law. The company will issue securities pursuant to Regulation D. At the closing, the company has agreed to reimburse the investor, the sum of $25,000 for expenses associated with due diligence, and its legal fees, which shall be paid at the closing.

On February 15, 2016, the transaction has been approved by the shareholders of the investor at its Extraordinary General Meeting.