Zix gets extension on redemption deadline for $5 million in restated convertible notes

By Sheri Kasprzak

New York, July 26 - Zix Corp. said it has received an extension for the redemption of $5 million in restated convertible notes.

The company had been required to redeem the notes by July 31, 2005. Zix may now redeem the notes by Aug. 31, 2005.

Zix said it intends to redeem between $1 million and $1.75 million of the $5 million in principal by Aug. 31. The remainder will be redeemed by paying the investors $3.5 million to $4.25 million in cash at 105% of the principal amount and by issuing warrants for 380,000 to 470,000 shares.

The $5 million is part of $20 million in notes due from 2005 to 2008.

The notes were first issued on Nov. 1, 2004 to Omicron Master Trust and Amulet Ltd. The notes were restated in April to reflect the mandatory redemption of $5 million of the principal by July 31, 2005 and $5 million in principal by Dec. 31, 2005.

Based in Dallas, Zix produces electronic communications services that deliver secured information to corporations. On Tuesday, its stock closed down $0.04 at $3.00.

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