By Laura Lutz
Des Moines, Dec. 12 - WorldHeart Corp. closed a $5 million private placement of convertible secured debt with investor Abiomed, Inc., according to a news release.
The debt matures in two years and bears interest at 8% per year. It is convertible into common stock at $1.75 per share.
Upon conversion, Abiomed would own a 19.9% stake in WorldHeart.
The two companies also entered into a two-year marketing and clinical support services agreement. In connection with that deal, Abiomed will receive a warrant for 3.4 million shares of WorldHeart.
WorldHeart is an Ottawa, Ont.-based medical technology company focused on circulatory support services.
| Issuer: | WorldHeart Corp.
|
| Issue: | Convertible secured debt
|
| Amount: | $5 million
|
| Maturity: | Two years
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | $1.75
|
| Warrants: | For 3.4 million shares (in separate deal)
|
| Investor: | Abiomed, Inc.
|
| Announcement date: | Dec. 12
|
| Stock symbol: | Toronto: WHT
|
| Stock price: | C$2.54 at close Dec. 11
|
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