Adrenalina revises terms of 5% convertible debentures, warrants sold in private placements

By Devika Patel

Knoxville, Tenn., Dec. 24 - Adrenalina has amended the terms of its 5% senior secured convertible debentures that were sold on Nov. 29, 2007, Feb. 28, 2008 and Aug. 22, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

Under the amendments, all unpaid interest on the debentures through Wednesday, which is equal to about $157,000 in total, will be added to the principal amount of each debenture.

The entire principal amount of the November debentures was due on May 29, 2010.

As a result of the amendment, the initial redemption date has been changed to July 1, 2009, the maturity date was extended to Dec. 1, 2010 and the conversion price was reduced to $0.50.

In connection with the November debentures, the investors received five-year warrants for 4 million common shares, which were exercisable at $2.00. As a result of the amendment, the strike price was lowered to $1.50.

The entire principal amount of the February debentures was due on Feb. 28, 2010.

As a result of the amendment, the initial redemption date has been changed to July 1, 2009, the maturity date was extended to Dec. 1, 2010 and the conversion price was reduced to $0.50.

In connection with the February debentures, the investors received five-year warrants for 3,333,333 shares, which were exercisable at $2.00. As a result of the amendment, the strike price was lowered to $1.50.

The entire principal amount of the August debentures remains due on Aug. 28, 2010.

Originally, the investors had the right to convert the debentures into shares at a fixed conversion price of $1.50. As a result of this amendment, the conversion price was lowered to $0.50.

In connection with the August debentures, the investors received five-year warrants for 333,333 shares, which were exercisable at $2.00 per share. As a result of the amendment, the strike price of these warrants was lowered to $1.50.

The amendments were reached Wednesday.

Miami-based Adrenalina sells athletic apparel, equipment and accessories.

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