New York, May 23 - Corgenix Medical Corp. said it has sold $3.42 million of senior convertible term notes due 2008 and $215,000 of common stock in a private placement.
A further $1.5 million could be added to the deal through additional investment rights that are exercisable for up to 270 days, potentially raising the total size to $5.135 million.
The investors also received warrants for 7.7 million shares.
For the convertible term notes, $2.42 million was funded at closing, with $250,000 of that amount put in a restricted cash account.
Ascendiant Securities LLC and Burnham Securities Inc. were placement agents.
No further details were immediately available.
Corgenix, a Denver-based maker of specialized diagnostic kits for immunology disorders, vascular diseases and bone and joint disorders, will use proceeds to refinance $970,000 of debt and for key strategic initiatives, working capital and other general corporate purposes.
| Issuer: | Corgenix Medical Corp.
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| Amount: | $3.635 million
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| Additional investment rights: | $1.5 million
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| Warrants: | For 7.7 million shares
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| Placement agents: | Ascendiant Securities LLC, Burnham Securities Inc.
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| Announcement date: | May 23
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| Stock price: | $0.24 at close May 20
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| Convertibles
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| Issue: | Convertible term notes
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| Amount: | $3.42 million
|
| Maturity: | 2008
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|
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| Stock
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| Issue: | Stock
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| Amount: | $215,000
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