CollaGenex Pharmaceuticals extends exchange offer to series D convertible preferreds

By Sheri Kasprzak

New York, Dec. 15 - CollaGenex Pharmaceuticals, Inc. has extended an exchange offer to holders of its series D convertible preferred stock.

The holders, which include OCM Principal Opportunities Fund, LP, have the option to exchange their preferreds for series D-1 preferred stock.

For the exchange, the holders must agree to permanently waive their right to approve research and development expenses in excess of $7 million. The holders will, in turn, get a reduction in the conversion price of the prefereds to $8.50 from $9.89.

The holders of the preferreds also agreed to reduce the mandatory conversion price to $17.00 from $19.78 and also to reduce to 30 from 40 the number of days before the company may require conversion of the series D preferreds.

The series D convertible preferreds were issued in 1999 and have a liquidation value of $20 million.

Based in Newtown, Pa., CollaGenex develops dermatology products.

The company's stock gained 5 cents to end at $11.13 Thursday.

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