By Sheri Kasprzak
Atlanta, April 5 - Calypte Biomedical Corp. said it has completed a private placement for $8 million.
The company sold secured senior convertible notes to accredited investors, including the company's largest shareholder, Marr Technologies BV.
The notes bear interest at 8% annually, mature in two years and are convertible into a total of 26.7 million common shares at $0.30 each.
Calypte may force conversion of the notes after 18 months under certain circumstances.
The investors will also receive series A warrants for 26.7 million shares, exercisable at $0.325 each for five years and series B warrants for 12 million shares, exercisable at $0.325 each for five years. Both sets of warrants become exercisable after six months, and the company may force the exercise of the series B warrants under certain circumstances.
Based in Pleasanton, Calif., Calypte develops and commercializes diagnostic testing products for sexually transmitted diseases. It plans to use the proceeds for the commercialization of its tests for HIV-½ diagnosis and for working capital.
| Issuer: | Calypte Biomedical Corp.
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| Issue: | Secured senior convertible notes
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| Amount: | $8 million
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| Maturity: | Two years
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| Coupon: | 8%
|
| Price: | Par
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| Yield: | 8%
|
| Conversion price: | $0.30
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| Conversion ratio: | Into 26.7 million common shares
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| Call: | May force conversion after 18 months
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| Warrants: | Series A warrants for 26.7 million shares; series B warrants for 12 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.325
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| Warrant call: | May force exercise of series B warrants
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| Investors: | Marr Technologies BV
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| Settlement date: | April 5
|
| Stock price: | $0.27 at close April 4
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