Note 11. Private Securities Offerings

During the six months ended November 30, 2020, the Company entered into various separate privately negotiated warrant exchange agreements with certain accredited investors, pursuant to which the investors purchased common stock at a range of $0.21 to $1.08 per share in exchange for warrants with an exercise price ranging from $0.30 to $1.35 per share of common stock. The Company issued approximately 29.0 million shares of common stock, $0.001 par value, in exchange for approximately 27.9 million warrants to purchase common stock, which resulted in net aggregate proceeds of approximately $12.4 million. In connection with these transactions, the Company recognized approximately $7.1 million of non-cash inducement interest expense.

On November 17, 2020, the Company conducted a private equity offering, in which Dr. Christopher P. Recknor, M.D., Chief Operating Officer, who was a non-executive at the time of the offering, purchased unregistered common stock at $1.50 per share. Pursuant to the offering, the Company sold approximately 0.67 million shares of common stock, $0.001 par value, for aggregate proceeds of $1.0 million. The transaction was approved by the Company’s Board of Directors, see Note 14 for further description.

On December 4, 2020, the Company entered into a privately negotiated warrant exchange agreement with an accredited investor, pursuant to which the investor purchased common stock at $0.36 per share in exchange for warrants with an exercise price of $0.45 per share of common stock. The Company issued approximately 0.3 million shares of common stock, $0.001 par value, in exchange for approximately 0.3 million warrants to purchase common stock, which resulted in net aggregate proceeds of approximately $0.1 million. In connection with this transaction, the Company recognized approximately $0.1 million of non-cash inducement interest expense.

On December 8, 2020, the Company entered into a privately negotiated warrant exchange agreement with an accredited investor, pursuant to which the investor purchased common stock at $0.24 per share in exchange for warrants with an exercise price of $0.30 per share of common stock. The Company issued approximately 2.0 million shares of common stock, $0.001 par value, in exchange for approximately 1.9 million warrants to purchase common stock, which resulted in net aggregate proceeds of approximately $0.4 million. In connection with this transaction, the Company recognized approximately $0.7 million of non-cash inducement interest expense.

On January 28, 2021, the Company entered into privately negotiated warrant exchange agreements with certain accredited investors, pursuant to which the investors purchased common stock at a range of $0.45 to $0.75 per share in exchange for warrants with an exercise price ranging from $0.90 to $1.50 per share of common stock. The Company issued approximately 3.6 million shares of common stock, $0.001 par value, in exchange for approximately 2.5 million warrants to purchase common stock, which resulted in net aggregate proceeds of approximately $2.9 million. In connection with this transaction, the Company recognized approximately $3.4 million of non-cash inducement interest expense and approximately $0.1 million offering costs.

As described in Note 5, an aggregate of approximately 8.3 million shares of common stock, $0.001 par value, were issued in exchange for the retirement of the March 2020 Note and partial repayment of portions of the July 2020 and November 2020 Notes during the nine months ended February 28, 2021.