MedaSorb to pay penalties to investors in series A convertible preferreds

By Sheri Kasprzak

New York, March 14 - MedaSorb Technologies Corp. has agreed to pay penalties related to not having the registration statement on its 10% series A cumulative convertible preferred stock declared effective in a timely manner.

The company will pay $105,000 for the 30-day period from Feb. 26 through the date the statement is declared effective by the Securities and Exchange Commission, according to an 8-K that MedaSorb filed Wednesday with the SEC.

The preferreds now will accrue dividends at 20% annually until the statement is declared effective.

"Although we timely filed the registration statement, as required by the subscription agreement, that registration statement has not yet been declared effective and we do not expect it to be declared effective until April 2007 at the earliest," the company said in the 8-K.

The preferreds were issued in June 2006.

Based in Monmouth Junction, N.J., MedaSorb is medical device company focused on blood purification technologies to remove toxins from circulating blood.

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