Integrated BioPharma redeems 650 series B convertible preferreds

By Jennifer Chiou

New York, Oct. 18 - Integrated BioPharma, Inc. announced the redemption of 650 shares of its series B redeemable convertible preferred stock held by Alexandra Global Master Fund, Ltd.

The company paid $6.5 million for the shares, which accrued dividends at $700.00 per share each year.

The company sold the preferreds in April 2004 at $10,000 per share.

Integrated BioPharma also agreed to issue to the holder 100,000 additional warrants to purchase its common stock at $12.00 per share exercisable until October 2011.

The company said it will also adjust the warrants issued in 2004 to carry the same terms as the new warrants.

The holder had until April 2007 to convert each preferred share into 1,000 shares of Integrated BioPharma common stock.

"We believe the early redemption of the preferred stock that eliminated the conversion rights at the $10.00 per share price and the deemed dividends and actual cash dividends paid subsequent to the redemption date on these shares is very much in the interest of the company and its common shareholders," chief executive officer E. Gerald Kay said in a news release.

The Hillside, N.J., pharmaceutical company used part of its $15 million credit line for the redemption.

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