By Devika Patel
Knoxville, Tenn., July 28 - OccuLogix, Inc. arranged an additional bridge loan on July 28 for $3.4 million, according to an 8-K filed Monday with the Securities and Exchange Commission.
The loan's investors include some of the investors who had planned to participate in the company's $5.08 million private placement of stock, which was announced on May 20. As a result, the company has allowed those investors to reduce their commitments in the stock deal, which, consequently, has been reduced to $2.17 million.
The additional bridge loan will constitute an increase to the $3.3 million in principal of the original bridge loan that currently is outstanding.
The original bridge loan was advanced in two tranches: a $3 million tranche on Feb. 19 and a $300,000 tranche on May 5.
The additional bridge loan will be advanced on substantially the same terms and conditions as the original bridge loan, the company said in the filing.
The additional bridge loan will bear interest at a rate of 12% per annum and will have the same maturity date as the original bridge loan.
Like the repayment of the original bridge loan, the repayment of the additional bridge loan will be secured by a pledge by the company of its majority ownership interest in OcuSense.
Under the terms of the loan agreement that governs the original bridge loan, OccuLogix has two pre-payment options, should it wish to repay the loan prior to maturity. The company has declared its intention to exercise one of these pre-payment options and plans to repay the original bridge loan in full by issuing a number of common shares to the lenders equal to the amount of outstanding principal and accrued interest on the loan at a 15% discount to the price paid by the private placement investors.
The company intends to pre-pay the additional bridge loan in the same manner.
The pre-payment of the original bridge loan and the additional loan agreement will result in the company issuing a minimum of 78,864,705 common shares, which will require stockholder and regulatory approval.
The new bridge loan is expected to settle on July 31.
Marchant Securities Inc. was the agent.
Boston-based OccuLogix develops ophthalmic devices to treat age-related eye diseases.
| Issuer: | OccuLogix, Inc.
|
| Issue: | Bridge loan
|
| Amount: | $3,403,500
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Warrants: | No
|
| Agent: | Marchant Securities Inc.
|
| Pricing date: | July 28
|
| Settlement date: | July 31
|
| Stock symbol: | Nasdaq: OCCX
|
| Stock price: | $0.159 at close on July 28
|
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