By Sheri Kasprzak
New York, Aug. 31 - Xechem International, Inc. said it has completed a private placement of convertible notes for $1 million.
The notes mature on April 6, 2007, bear interest at 8% annually and are convertible into common shares at $0.05 each before Feb. 1, 2006 and $0.01 each after Feb. 1, 2006.
Presently, the company does not have enough common shares to facilitate the conversions, so it will issue series C convertible preferred stock in the interim. The preferreds are convertible into a total of 1 million common shares. Xechem's stockholders are in the process of authorizing the issuance of additional common shares.
The notes will be funded in the next 50 days. So far, the company has received $100,000 of the proceeds. It will receive $400,000 before Sept. 6 and $500,000 before Oct. 6.
If the investors fund the entire $1 million, Xechem will issue as collateral a total of 15 million common shares - or 1.5 million shares for each $100,000 in principal funded.
The proceeds will be used to repay a portion of the company's outstanding loans.
Based in New Brunswick, N.J., Xechem is a biotechnology company focused on treatments for diseases like sickle cell anemia.
| Issuer: | Xechem International, Inc.
|
| Issue: | Convertible notes
|
| Amount: | $1 million
|
| Maturity: | April 6, 2007
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | $0.05 before Feb. 1, 2006; $0.01 after Feb. 1, 2006
|
| Warrants: | No
|
| Settlement date: | Aug. 25
|
| Stock price: | $0.0125 at close Aug. 25
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
