AXM Pharma gets extension on principal payments on $3.4 million in convertibles

By Sheri Kasprzak

New York, April 21 - AXM Pharma, Inc. said it has received an extension on principal payments on $3.4 million in convertible notes issued in April 2005.

The principal on the 9% notes will now be due March 1, 2009, pushed back from September 2005.

The notes are convertible into common shares at the lesser of $2.10 or 82.5% of the volume weighted average price of the company's stock for the 20 trading days before conversion.

Also, the holders will receive warrants for 2,055,000 shares, exercisable at $1.80 each, with 455,000 shares restated from an original price of $2.41.

Based in City of Industry, Calif., AXM manufactures generic pharmaceuticals and nutraceuticals for the Chinese and other Asian markets.

The stock lost a penny on Friday to end at $0.31 (Amex: AXJ).

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