Converted Organics revises terms of convertible debentures

By Devika Patel

Knoxville, Tenn., Jan. 29 - Converted Organics Inc. has amended the terms of $4.5 million of secured convertible debentures that were sold to Professional Offshore Opportunity Fund, Ltd, Professional Traders Fund, LLC and High Capital Funding, LLC in a Jan. 24, 2008 private placement, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The maturity date has been extended to July 24, 2009 from Jan. 24, 2009 and the company will not have to pay interest on the debentures until maturity.

Holders may convert the debentures into common stock at the default conversion price, or 70% of the average of the three lowest closing prices of the stock during the 20-day trading period immediately prior to the conversion notice.

The investors also agreed to waive any defaults under the debentures.

In exchange for the above concessions, the debenture holders received 200,000 common shares.

Boston-based Converted Organics is focused on producing fertilizer and soil amendment products by recycling food waste.

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