Bio-One transfers $9 million in defaulted debt to CSI Business Finance

By Sheri Kasprzak

New York, March 24 - CSI Business Finance, Inc. has taken on $9 million in convertible notes and debentures issued in 2004 by Bio-One Corp. to Cornell Capital Partners, LP.

Bio-One transferred a $300,000 convertible promissory note issued Nov. 18, 2004, a $200,000 convertible promissory note issued Oct. 21, 2004 and $8.5 million in outstanding principal on a $15 million convertible debenture issued March 26, 2004.

The 5% debentures were due in three years and were convertible into common shares at the lower of 120% of the volume weighted average price of the company's stock on Sept. 9 or 80% of the average of the three lowest volume weighted average prices for the five trading days before conversion.

Bio-One is in default on all of the securities but doesn't have the means to cure the default. In lieu of foreclosure, the issuer transferred the debt to CSI.

CSI already holds a $600,000 note issued by Bio-One on Sept. 9, 2005.

The transfer cancels all of Bio-One's obligations on the default.

Houston-based Bio-One commercializes blood plasma products. CSI is Bio-One's largest secured creditor.

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