Hemagen Diagnostics again extends exchange offer on 8% convertible notes

By Sheri Kasprzak

Atlanta, Nov. 30 - Hemagen Diagnostics Inc. has yet again extended the exchange offer on the $6,090,000 principal amount of its 8% senior subordinated secured convertible notes and modified notes.

The offer was scheduled to expire Nov. 29 but will now expire at midnight Dec. 3.

So far, $5,725,000 of the notes has been deposited for exchange.

This marks the fifth time Hemagen has extended the exchange offer on the notes. The notes were originally scheduled to expire Oct. 15, but the expiration was moved to Oct. 29. The expiration was then moved to Nov. 12, then to Nov. 19, to Nov. 29 and most recently to Dec. 3.

Under the terms of the exchange, Hemagen will exchange $2.04 million of the notes for stock at $0.40 per share and $4.05 million for modified notes.

The modified notes pay interest at 6% and mature Sept. 30, 2009. Those notes are convertible into stock at $0.75.

Security for the notes will be similar to the existing convertibles but they will be subordinated to $3 million of assets, which may be pledged to secure a credit facility, an increase of $1 million from the current level.

Hemagen, based in Columbia, Md., is a biotechnology company specializing in diagnostic test kits. On Monday, the company's stock closed unchanged at $0.30.

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