By Sheri Kasprzak
New York, Jan. 5 - Accentia Biopharmaceuticals, Inc. got a $2.5 million expansion of its current credit facility with Laurus Master Fund, Ltd. and obtained a $3 million revolving credit agreement from Missouri State Bank.
The $2.5 million is being funded as a loan by Laurus.
The loan matures on July 2, 2006 and bears interest at Prime rate plus 200 basis points.
The investor also received warrants for 51,000 shares, exercisable for 10 years. The full terms of the warrants could not be determined Thursday.
Accentia may prepay the loan at any time without penalty.
Separately, Accentia entered into a $3 million revolving credit agreement with Missouri State Bank. That credit agreement is payable on Jan. 15, 2007 and bears interest at Prime rate flat.
The expansion of the credit facility was granted as part of Accentia's financing initiatives. The company is currently trying to restructure its current debt and is seeking out additional public or private equity offerings or debt financings.
If the company is unable to raise more funds in the near term, it may consider selling some of its assets or business units.
Accentia is a Tampa, Fla.-based biopharmaceutical company.
| Issuer: | Accentia Biopharmaceuticals, Inc.
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| Issue: | Loan
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| Amount: | $2.5 million
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| Maturity: | July 2, 2006
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| Coupon: | Prime rate plus 200 basis points
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| Warrants: | For 51,000 shares
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| Warrant expiration: | 10 years
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| Investor: | Laurus Master Fund, Ltd.
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| Settlement date: | Dec. 29
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| Stock price: | $5.07 at close Dec. 29
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