5 Oct 2004capital raising announcement● NeutralMajor
On September 30, 2004 the company completed a restructuring of its Senior Secured Notes with holders Pearl Waves and Wallington Investment Holdings. It prepaid $1.6 million of roughly $4.9 million outstanding, kept the 8.5% interest rate, and dropped the principal payments that were due in 2005 and 2006. Holders can now exchange the notes for ordinary shares at $0.80 per share, once an SEC registration statement is effective, so shareholders could be diluted if they do. Several warrant series were also amended, with expiry extended to March 2011 and a cut from $1.25 to $0.50 on about 2.65 million Series B warrants as notes are exchanged or repaid; the company received no cash from the deal.