A Medical Device Daily

Graymark Healthcare (Oklahoma City), a diversified medical holding company, reported that its board has approved a reverse split of its common stock at a ratio of 1-for-5 shares. The stock split will take effect on April 11.

"The reverse split is part of our overall strategy to achieve an optimal capital structure for Graymark Healthcare," said Stanton Nelson, president/CEO of Graymark. "This action will assist us in attracting and retaining long-term institutional shareholders and will move us closer to the opportunity of listing our common stock on a national exchange. We view the reverse split as an integral step in our transition to becoming a premier healthcare company."

The reverse split will reduce the number of shares of Graymark's common stock outstanding from about 117.7 million to about 23.5 million.

Graymark owns diagnostic sleep centers that treat a wide range of sleep disorders; a medical equipment company that provides both disposable and durable medical equipment; and independent pharmacies.

Nanogen (San Diego) reported that it has entered into agreements with the holders of its 6.25% senior convertible notes, due 2010, issued on Aug. 27, 2007, to restructure this indebtedness.

The holders of the notes will exchange $12.9 million in principal amount of the old notes with the company's 9.75% senior secured convertible notes, due 2010, with an aggregate principal amount of $15.5 million. The senior convertible notes are convertible initially into about 22,784,000 shares of common stock of the company at a price of $0.6803 a share. The terms of the 9.75% senior convertible notes provide for the mandatory payment of the principal in specified installments as well upon certain asset disposition and financing transactions.

The balance of the 6.25% senior convertible notes will remain outstanding, secured by a $7 million letter of credit.

Upon closing of the restructuring, the conversion price of the remaining 6.25% senior convertible notes and the exercise prices of certain warrants issued in the August 2007 debt financing will be adjusted to an amount equal to $0.6803.

The holders of its 6.25% senior convertible notes consented to potential sale of certain royalties contingent upon the consummation of the restructuring.

Nanogen is involved in two in vitro diagnostic markets: molecular diagnostics and rapid point-of-care testing.