Pursuant to the agreement, the Company sold 1,500,000 shares of Common Stock at a price of $0.40 per share for an aggregate purchase price of $600,000. The purchaser has the option, by notice to the Company no later than 10 business days following the release of an official announcement by the Company that it is initiating its first human clinical trial, to purchase an additional 800,000 shares of Common Stock at a purchase price of $0.75 per share, and receive warrants therewith, for an aggregate purchase price of an additional $600,000.