NXT revises original issue discount notes and convertible debentures

Maturity dates, conversion prices adjusted; company plans financing

By Devika Patel

Knoxville, Tenn., Nov. 10 - NXT Nutritionals Holdings Inc. negotiated an agreement with the holders of 93.5% of the company's original issue discount senior secured notes and holders of about 70% of its convertible debentures on Nov. 4, according to an 8-K filed Thursday with the Securities and Exchange Commission.

Under the agreement, the senior secured notes investors waived their right to monthly redemptions, and the notes' maturity date was extended to the four year anniversary of the date when the company settles a planned 2011 financing. The notes previously matured on Aug. 1, 2011.

In addition, the senior secured notes' conversion price has been lowered to $0.25, and the investors agreed to subordinate their security interests underlying the notes to the interests the company will grant to secure investors in the planned financing.

The company also reported that it has amended its convertible debentures so that the conversion price of the debentures and exercise price of the related warrants will be $0.25. The debentures' maturity has also been extended to four years from settlement of the planned financing.

NXT Nutritional is a Holyoke, Mass.-based developer and marketer of proprietary, patent-pending healthy alternative sweeteners, food and beverage products.

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