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Hemagen extends exchange offer on $6.09 million in 8% convertible notes
By Sheri Kasprzak
Atlanta, Oct. 18 - Hemagen Diagnostics Inc. has extended its offer to exchange $6.09 million in 8% senior subordinated secured convertible notes to Oct. 29.
The exchange offer on the notes, which are due 2005, had originally been scheduled to expire Oct. 15. The notes are exchangeable for stock and modified notes.
Under the terms of the exchange, the company is offering to exchange $2.04 million of the notes for stock at a price of $0.40 per share and the remaining $4.05 million for modified notes.
Holders exchanging $100,000 of the existing convertibles will receive 83,750 shares and $66,500 in modified notes.
The modified notes will pay interest at 6% and mature on Sept. 30, 2009. They will be convertible into stock at a price of $0.75.
Security for the notes will be similar to the existing convertibles but they will be subordinated to $3 million of assets which may be pledged to secure a credit facility, an increase of $1 million from the current level.
Hemagen, based in Columbia, Md., is a biotechnology company specializing in diagnostic test kits. The company's stock closed unchanged Monday at $0.50.
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