North American Scientific issues warrants after amending $5 million revolver

By Sheri Kasprzak

New York, Jan. 19 - North American Scientific, Inc. has granted warrants to the holder of a $5 million revolving line of credit after amending the terms of the loan.

Silicon Valley Bank received warrants equal to the number of shares equal to $75,000 divided by an exercise price that is the lesser of $1.99, the average closing price on the five trading days before the issue date or the lowest closing price during the 10 trading days after the release of the company's earnings report. The warrants expire in five years.

Silicon Valley Bank holds a $5 million loan originally issued on Oct. 11, 2005.

The terms of the loan were amended so that the minimum tangible net worth that North American Scientific must maintain be dropped to $1.5 million from $5 million.

The one-year loan bears interest at Prime rate plus 150 basis points.

Based in Chatsworth, Calif., manufactures products used in oncology.

On Thursday, the company's stock gained $0.038 to end at $1.928 (Nasdaq: NASI).

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