Applied DNA Sciences Inc. (OTCBB:APDN) announced a private placement of 5,500 series A convertible preferred stock at $1,000 per share and 10,752,688 common shares along with 10,752,688 series A warrants at $0.186 per share for gross proceeds of $7,500,000 on November 28, 2012. The company will also issue 29,569,892 series B warrants and 26,881,720 series C warrants in the transaction. The preferred stock is convertible into common shares of the company at the option of the holder at a fixed conversion price of $0.186 or at a non-fixed conversion price which is equal to the consolidated closing bid price of the company's common shares for the most recently completed trading day as of the time of conversion. The preferred stock will be automatically converted into common shares of the company on the first anniversary from the date of issuance at the then applicable non-fixed conversion price. The securities will be issued pursuant to Regulation D to accredited new investor Crede CG II, Ltd. Minimum investment accepted from any outside investor is $2,000,000. The investor is in a passive position and will not occupy a board position in the company. Peter H. Lieberman of Greenberg Traurig, LLP will serve as the legal advisor to the investor and Merrill Kraines of Fulbright & Jaworski, L.L.P. will serve as the legal advisor to the company. The company is responsible for the payment of any placement agent's fees, financial advisory fees, or broker's commissions pursuant to the transaction. In the event that the first tranche does not close within 10 days from the date of announcement, then the investor may terminate its obligations pursuant to the transaction and in the event that the second tranche of the transaction does not close by March 14, 2013, then the company shall have the right to terminate the obligations pursuant to the transaction.

The series A warrants will be exercisable into common shares of the company at an exercise price of $0.2232 per share for a period of five years from the date of issuance. The series B warrants are exercisable into common shares of the company at an exercise price of $0.2232 per share if the investor converts the series A preferred shares into common shares at fixed conversion price. The series B warrants will not be exercisable until the earlier of March 16, 2013 or the second closing and will mature in five years from the date of issuance. The company also issued series C warrants to the investor exercisable into common shares of the company at $0.2232 per share. The series C warrants will only be exercisable for six months from the earlier of March 16, 2013 or after the eleventh trading day following the second closing. The series B and series C warrants provide the company with an option to repurchase any remaining unexercised portion of such warrants for a repurchase price equal to $50,000, if the second closing is terminated pursuant to the agreement.

The securities being issued contain a 9.9% blocker so that in no event shall the investor hold more than 9.9% stake in the company.

On November 29, 2012, the company issued 10,752,688 common shares along with 10,752,688 series A warrants, 29,569,892 series B warrants and 26,881,720 series C warrants.

On January 7, 2013, Applied DNA Sciences Inc. closed the transaction. The company issued 5,500 series A convertible preferred stock in the second and final tranche of the transaction.