LAVAL, QC, June 11 /CNW/ – BioSyntech, Inc. (TSX: BSY – News; the Company) gave notice to its debentureholders that it exercised its right to make the interest payment of $745,800 due on June 30, 2009 by issuing common shares. The number of common shares to be issued on June 30, 2009 will be equal to the amount of the interests, divided by 95% of the volume weighted average trading price per common share for the five trading days immediately preceding.
On July 15, 2008, the Company closed a bought deal financing of 11,000 subordinated secured convertible debentures units of the Company, each comprised of $1,000 principal amount of subordinated secured convertible debentures and 2,500 warrants, representing gross aggregate proceeds of $11,000,000 to the Company. On July 18, 2008, the underwriters exercised part of an over-allotment option to purchase an additional 1,550 Units for gross proceeds of $1,550,000. The debentures mature on December 31, 2009 and bear interest to an annual rate of 12.0% payable semi-annually, not in advance, on June 30 and December 31 of each year.
Change in Board of Directors
BioSyntech also announced today that Mr. Nick Losey has tendered his resignation as member of the Board. This resignation is subsequent to Mr. Losey’s resignation from Highland Capital Management. Under the terms of an underwriting agreement signed in connection with the July 2008 debenture financing, Highland Capital Management has the right to nominate one member to the Board of the Company. No replacement has been appointed at this time.