Magnolia Solar amends convertibles' maturity, coupon, conversion price

Warrants sold with notes in 2009 placement get reduced strike price

By Devika Patel

Knoxville, Tenn., Jan. 4 - Magnolia Solar Corp. amended its $2.4 million original issue discount senior secured convertible notes and warrants for 2.4 million common shares on Dec. 31, according to an 8-K filed Friday with the Securities and Exchange Commission. The securities were issued in a Dec. 31, 2009 private placement.

The company amended $1 million of notes to extend the maturity dates to Dec. 31, 2013 from Dec. 31, 2012 and another $1 million of notes to extend the maturity date to June 30, 2013 from Dec. 31, 2012. It also amended $400,000 of notes to reduce the conversion price to $0.25 from $1.00. The company also revised $2 million of notes so that they will pay 10% interest and so that interest may be paid in cash or shares.

The strike price of the warrants was reduced to $0.25 from $0.50.

The Woburn, Mass., company is developing nanotechnology-based, thin-film technology that can be deposited on a range of substrates, including glass and flexible structures.

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