The European convertible debt holders of Biodynamics InternationalInc. have agreed to convert half their bonds into preferred stock in theU.S. company. This provides the company with $3 million in newcapital. In exchange, the bondholders received 300,000 shares ofpreferred stock at a price of $11 per share. U.S. convertible debtholders were not involved.This transaction raised the net worth of the company to $3.5 million,and allowed it to reduce its annual interest expense by about $300,000.Dave Nichols, Biodynamics' vice president for finance, said the actionwas taken to meet NASDAQ's capital and surplus requirement of $1million. NASDAQ had granted the Tampa, Fla. company a three-month temporary exception to raise this amount. Nichols saidBiodynamics had fallen below the $1 million level because offluctuating exchange rates and costs associated with Biodynamics' $17million acquisition of its European subsidiary in May 1993.Biodynamics (NASDAQ: BDYN) is a provider of specialty surgicalproducts. _ Philippa Maister
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