Element Nutritional Sciences seeks to restructure 10% convertibles

By Wendy Van Sickle

Columbus, Ohio, Dec. 21 – Element Nutritional Sciences Inc. is proposing to restructure the 10% convertible debentures it issued on June 30 and July 14, which are scheduled to mature 24 months from their date of issuance, according to a news release.

The company is seeking to amend the debentures to accelerate the maturity date to 12 months from the date of issuance, increase the interest rate to 39%, and remove the right of debentureholders to receive cash payment at maturity of the outstanding principal and accrued unpaid interest.

Holders who agree to restructure their debentures under the restructuring will receive a one-time bonus equal to 10% of the outstanding principal, converted into common shares of the company at a price of C$0.06 per share. Any bonus shares issued in connection with the restructuring will be subject to a hold period of four months and one day.

The restructuring is subject to debentureholder approval.

Based in Burlington, Ont., the nutraceutical company specializes in the development of patented and science-based products for the global consumer packaged goods market, with a portfolio focused on muscle health.

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