By Sheri Kasprzak
New York, Oct. 28 - World Health Alternatives, Inc. said it has agreed to issue a promissory note for $8,040,879 to an investor to settle a lawsuit related to its default on a $4 million bridge loan.
Palisades Master Fund LLP and its affiliate PEF Advisors Ltd. received the 12% note in exchange for dropping their suit against World Health. The notes are due on Jan. 20, 2006.
Under the terms of the lawsuit, Palisades and PEF alleged a breach of contract on World Health's part related to World Health's default on a $4 million bridge loan Palisades bought on Aug. 18.
To settle the suit, World Health also acknowledged that Palisades holds 5,882 shares of its series A preferred stock.
The company has launched an internal investigation into financial irregularities following the resignation of its chief executive officer, Richard McDonald, in August.
Based in Pittsburgh, World Health Alternatives provides staffing services for the medical industry.
| Issuer: | World Health Alternatives, Inc.
|
| Issue: | Promissory note
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| Amount: | $8,040,879
|
| Maturity: | Jan. 20, 2006
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Warrants: | No
|
| Investor: | Palisades Master Fund LLP
|
| Settlement date: | Oct. 24
|
| Stock price: | $0.10 at close Oct. 24
|
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