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Hemagen extends exchange offer on $6.09 million in convertible notes
By Sheri Kasprzak
Atlanta, Nov. 15 - Hemagen Diagnostics Inc. said Monday it will extend its offer to exchange $6.09 million of its 8% senior subordinated secured convertible notes for stock and modified notes.
The exchange offer on the 2005 notes had been scheduled to expire Nov. 12, but will now expire Nov. 19.
The offer had originally been set to expire Oct. 15 but was extended to Oct. 29. On Nov. 1, the exchange offer was extended to Nov. 12.
Under the terms of the exchange, Hemagen will exchange $2.04 million of the notes for stock at $0.40 per share and $4.05 million for modified notes.
The modified notes pay a coupon of 6% and mature Sept. 30, 2009. Those notes are convertible into stock at $0.75.
To date, $5.275 million of the notes have been deposited for exchange.
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 $0.39.
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