By Sheri Kasprzak
New York, Oct. 20 - Chromos Molecular Systems Inc. intends to use the proceeds from a C$2 million bridge loan to seek out additional equity financing.
The notes, funded by Pender NDI Life Sciences (VCC) Inc., Pender Growth Fund (VCC) Inc., NeuroDiscovery LP and Rix Professional Medical Corp., will automatically convert into the type and class of securities of Chromos issued in the subsequent equity offering at a price equal to 90% of the issue price of those securities.
If no equity financing is conducted, the 10% notes will be due Oct. 18, 2008.
According to a statement released Friday morning by Chromos, if the company does not complete a subsequent equity financing, it may be required to scale back or terminate operations.
Based in Burnaby, B.C., Chromos is a drug development company focused on treatments for inflammatory diseases and thrombotic disorders.
| Issuer: | Chromos Molecular Systems Inc.
|
| Issue: | Bridge loan
|
| Amount: | C$2 million
|
| Maturity: | Oct. 18, 2008
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | At a price equal to 90% of the issue price of subsequent equity financing (Automatically convertible if equity financing is completed)
|
| Warrants: | No
|
| Investors: | Pender NDI Life Sciences (VCC) Inc., Pender Growth Fund (VCC) Inc., NeuroDiscovery LP and Rix Professional Medical Corp.
|
| Settlement date: | Oct. 18
|
| Stock symbol: | Toronto: CHR
|
| Stock price: | C$0.15 at close Oct. 18
|
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