Corgenix authorizes enough shares to close $2 million PIPE from December

By Sheri Kasprzak

New York, March 28 - Corgenix Medical Corp. said its shareholders have authorized the issue of enough common shares to conclude its previously announced $2 million private placement of series A convertible preferreds from December.

At the time the placement was settled - Dec. 28 - Corgenix did not have enough authorized share capital to cover the underlying common shares for the preferreds.

On March 24, its shareholders approved the increase of the authorized share capital to 100 million shares from 40 million.

As previously reported, Barron Partners, LP bought the preferreds - 2 million shares at $1.00 apiece.

Each preferred is initially convertible into 2.8571428571 common shares.

The investor also received warrants for up to 15 million shares, exercisable at $0.40 each for 5 million shares, at $0.50 for 5 million shares and at $0.60 each for 5 million shares. The warrants expire in five years.

Ascendiant Securities, LLC was the placement agent for the deal.

Also on Tuesday, the company announced that it named Charles Scoggin and Larry Rau to its board of directors.

As part of their appointment, the two received stock options for up to 30,000 shares, exercisable at $0.40 each.

As part of the 2005 PIPE with Barron, Corgenix had agreed to ensure that a majority of its board members and directors were qualified independent directors within 90 days after Dec. 28 or March 28. If the board fails to meet either the majority board or majority committee requirement, Barron will receive $20,000 for each month the requirement has not been met.

Following the acceptance of the newly named directors, the company's board is filled with only independent directors.

Based in Denver, Corgenix manufactures diagnostic kits for immunology disorders, vascular diseases and bone and joint disorders.

On Dec. 28, 2005, when the deal was closed, Corgenix's stock closed at $0.46. The stock closed unchanged at $0.40 March 27 (OTCBB: CONX).

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