By Sheri Kasprzak
New York, May 2 - Accentia Biopharmaceuticals, Inc. said Telesis CDE Two, LLC has purchased its $11.5 million convertible loan from Biovax, Inc.
The loan matures Oct. 27, 2013, bears interest at 1% annually and is convertible into shares at the average closing stock price for the five trading days before conversion.
Telesis received warrants for 1.2 million shares of Biovax's parent Biovest International, Inc., exercisable at $1.30 each through April 24, 2015. Telesis will also receive warrants for 100,000 shares of Accentia, exercisable at $9.00 each through April 24, 2013.
The proceeds Biovax receives from the loan will be used to purchase vaccine manufacturing assets, make a deposit on the company's sublease to benefit Biovest, to expand work on 25 vaccines from Biovest and to redeem 10 million shares of Biovest owned by Accentia for $6 million.
On April 28, Biovest transferred all of its assets for its vaccine manufacturing business in Worcester, Mass., to Biovax. Biovax paid Biovest $1.5 million for the transfer and Biovax advanced rental payments for $4.5 million.
Based in Tampa, Accentia is a biopharmaceutical company focused on treatments for cancer and respiratory disorders.
| Issuer: | Accentia Biopharmaceuticals, Inc.
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| Issue: | Convertible loan
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| Amount: | $11.5 million
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| Maturity: | Oct. 27, 2013
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| Coupon: | 1%
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| Price: | Par
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| Yield: | 1%
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| Conversion price: | Equal to the average closing stock price for the five trading days before conversion
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| Warrants: | For 1.2 million shares of Biovax and 100,000 shares of Accentia
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| Warrant expiration: | April 24, 2015 for Biovax warrants; April 24, 2013 for Accentia warrants
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| Warrant strike price: | $1.30 for Biovax warrants; $9.00 for Accentia warrants
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| Investor: | Telesis CDE Two, LLC (purchased from Biovax, Inc.)
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| Settlement date: | April 26
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| Stock symbol: | OTCBB: ABPI
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| Stock price: | $6.98 at close April 26
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