Diasense fails to complete $3 million private placement required to convert demand note

By Sheri Kasprzak

New York, Aug. 22 - Diasense, Inc. has not completed a $3 million private placement that would have allowed it to convert the entire principal of a note on which holders are demanding immediate payment.

Under the terms of the note offering, Diasense would have had to complete a $3 million private placement before March 31, 2006 in order for the note currently being demanded to be convertible into common stock.

"However, the company has been unable to complete a private offering and sale of its equity securities before or since the expiration of the March 31, 2006 deadline set for in the note conversion agreement," according to a form 8-K the company filed with the Securities and Exchange Commission Tuesday. "Hence, the demand note has not been converted."

The company recently received notice from Dominion Assets, LLC demanding immediate payment of $1,954,936 in principal of the notes, issued to Bico, Inc. and then assigned to Dominion, and another $50,700 in principal extended to the company by Dominion.

The 8% note was first issued to Dominion in July 2004.

Diasense, based in Pittsburgh, develops non-invasive glucose sensors.

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