Neoprobe extends maturity on convertible notes to January 2009

By Sheri Kasprzak

New York, Dec. 1 - Neoprobe Corp. has delayed the maturity on $8.1 million in secured convertible notes first issued in December 2004.

The notes held by Great Point Partners LLC will now be due Jan. 7, 2009, pushed back from Dec. 13, 2008.

For the extension, the interest rate will be increased to 12% from 8%.

The notes remain convertible at $0.40 each.

Great Point purchased the notes Dec. 10, 2004.

"The elimination of key note covenants, the relief from anti-dilution protection and the ability of the company to retire the notes without any pre-payment penalty provides Neoprobe with considerable flexibility to manage its capital structure going forward, all without any incremental dilution to the shareholders of Neoprobe," Neoprobe chief executive officer David Bupp said in a statement.

Neoprobe, located in Dublin, Ohio, produces gamma detection systems used by cancer surgeons.

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