Eugene Science may be in default on 10% senior secured promissory notes

By Devika Patel

Knoxville, Tenn., June 9 - Eugene Science, Inc. may be in default on its $2.25 million in 10% senior secured promissory notes, which were due Feb. 24, according to an 8-K filed Monday with the Securities and Exchange Commission.

According to the filing, the company failed to pay the outstanding principal amount and interest due under the notes on May 24, the expiration date of the final one-month extension period.

Under the notes' terms, this failure to pay may be deemed an event of default, which gives the investors the right, by written notice, to declare the notes to be due and payable in full.

In addition, the investors may assert their rights to the collateral securing the company's obligations under the notes.

The company said it has not received any notices of default from the investors.

It currently is in discussions with some of the investors regarding the terms of a possible restructuring of its obligations under the notes, but no agreements have been reached.

Los Angeles-based Eugene Science develops nutritional supplements.

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