American Bio to amend 10% convertible debentures through agent Cantone

Maturity extended to Aug. 1, 2013; interest to accrue at 15% per year

By Devika Patel

Knoxville, Tenn., July 31 - American Bio Medica Corp. plans to amend the terms of its $750,000 subordinated convertible debentures due Aug. 1, 2012, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The company negotiated a placement agent agreement with Cantone Research, Inc. on July 25, under which Cantone will be the company's agent for the amendments.

The convertibles will be amended to extend their maturity by one year to Aug. 1, 2013 and to increase the coupon to 15% from 10%.

The company also negotiated a $150,000 bridge loan and note agreement with the agent. The loan will be used to cover any amounts owed to the debenture holders who do not wish to amend their convertible debentures. Any remaining amounts from the loan will be used for working capital purposes.

The15% loan matures Aug. 1, 2013. Cantone will also receive a number of restricted shares equal to 10% of the debentures, or $15,000 using a value of $0.17 per share, or 88,235 restricted common shares.

Located in Kinderhook, N.Y., American BioMedica develops onsite drugs-of-abuse diagnostic kits and support services worldwide.

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