In such examination, we have assumed the genuineness of all signatures, the legal capacity of all natural persons, the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as certified, conformed or photostatic copies and the authenticity of the originals of such latter documents. As to all questions of fact material to this opinion that have not been independently established, we have relied upon certificates or comparable documents of officers and representatives of the Company.
Based upon and subject to the limitations, qualifications and assumptions set forth herein, we are of the opinion that:
1. The Common Shares and Option Shares to be issued and sold by the Company have been duly authorized for issuance and, when issued and paid for in accordance with the terms and conditions of the Underwriting Agreement, will be validly issued, fully paid andnon-assessable shares of Common Stock.
2. The Series A Preferred Shares to be issued and sold by the Company have been duly authorized for issuance and, when issued and paid for in accordance with the terms and conditions of the Underwriting Agreement, will be validly issued, fully paid andnon-assessable shares of Series A Convertible Preferred Stock.
3. The Conversion Shares to be issued by the Company upon conversion of the Series A Preferred Shares have been duly reserved for issuance and, when issued in accordance with the terms and conditions of the Certificate of Designation, will be validly issued, fully paid andnon-assessable.
4. The Warrants and Option Warrants to be issued and sold by the Company have been duly authorized for issuance and, when issued and paid for in accordance with the terms and conditions of the Underwriting Agreement, will constitute valid and binding obligations of the Company, enforceable against the Company in accordance with their terms.
5. The Warrant Shares to be issued by the Company upon exercise of the Warrants and Option Warrants have been duly reserved for issuance and, when issued in accordance with the terms and conditions of the Warrants, will be validly issued, fully paid andnon-assessable.
The opinions expressed above with respect to validity, binding effect and enforceability are subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors’ rights and remedies generally, and subject, as to enforceability, to general principles of equity, including principles of commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at law or in equity) and except that rights to indemnification and contribution thereunder may be limited by federal or state securities laws or public policy relating thereto.