Avitar names investors in $3 million convertible note deal

By Sheri Kasprzak

New York, Sept. 28 - Avitar Inc. has revealed the investors connected to its previously announced $3 million private placement of 8% convertible notes.

The notes were sold to AJW Partners, LLC; AJW Offshore, Ltd.; AJW Qualified Partners, LLC and New Millennium Capital Partners II, LLC.

As previously reported, the three-year notes are convertible into common shares at a price equal to 65% of the average of the three lowest intraday trading prices for the 20 trading days before conversion.

The investors will receive warrants for 6 million shares, exercisable at $0.25 each for five years.

The proceeds will be used to fund the growth of the company's ORALscreen products.

Based in Canton, Mass., Avitar manufactures oral fluid diagnostic tests for drug abuse.

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