CardioVascular BioTherapeutics investor in action over default dispute

By Devika Patel

Knoxville, Tenn., June 17 - CardioVascular BioTherapeutics, Inc. reported that an investor has begun litigation in New York due to a default on a convertible note.

According to an 8-K filed Wednesday with the Securities and Exchange Commission, the investor, Leonardo LP, is seeking to recover about $1.4 million it claims is due under a floating-rate senior secured convertible note due March 20, 2009.

As of March 20, the note's balance of $1.4 million remains outstanding. This will not be paid, the company said in an earlier filing, which constitutes a default. The company has retained local counsel in New York to defend its position.

As previously reported, the company defaulted on its agreement with Leonardo by failing to issue 1,581,164 common shares when the investor submitted a conversion notice on Jan. 20.

CardioVascular BioTherapeutics said it elected not to honor the conversion notice because it believes Leonardo's trading practices with stock previously received through conversions of the note have resulted in the continual decline of the company's stock price.

CardioVascular BioTherapeutics is a Las Vegas-based biopharmaceutical company.

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