A Medical Device Daily
Xenomics (Monmouth Junction, New Jersey), a developer of non-invasive next-generation molecular diagnostics, reported the restructuring of its 6% convertible debentures issued in November 2006.
As previously discussed in company filings with the U.S. Securities and Exchange Commission, the company has been seeking to restructure the debt owed to holders of the debentures, amounting to $2,170,500 in principal originally due in November 2008, plus interest and penalties, following various events of default and covenant breaches.
Effective Jan. 30, the company entered into a forbearance agreement with its debenture holders which provides for a waiver of existing defaults and an extension of the debenture's maturity date to Dec. 31, 2010. The company agreed to pay all accrued interest and potential default penalties and late fees in shares of common stock of the company, aggregating 5,337,474 shares, and to increase the interest rate on the debentures from 6% to 11%, which will also be payable in common stock. In addition, the company agreed to add to its board two new qualified members to be proposed by certain holders of a majority of the debentures.
The company said it looks forward to proceeding with development of its molecular diagnostic technology and working toward becoming current with its SEC filings. Despite a very challenging economic environment, the company said it strongly believes that there is a need for its products and that the molecular diagnostic sector will continue to grow rapidly. The company believes its technology has a broad range of detection / monitoring / screening applications, including prenatal conditions, infectious diseases, tissue transplantation, neurodegenerative disorders, various tumors, and can open significant new markets in the molecular diagnostics field.