By Sheri Kasprzak
New York, July 31 - pSivida Ltd. concluded a private placement of subordinated convertible debentures for $6.5 million.
Absolute Europe Catalyst Fund, Absolute Octane Fund and Australian IT Investments Ltd. bought the 8% debentures, which are due in three years.
The debentures are convertible into American Depositary Shares at $2.00 each.
The debentures may be redeemed at any time at 108% of face value plus interest. The company may force conversion of the debentures if its stock trades above $4.00 for more than 25 consecutive trading days.
The investors received warrants for ADS equal to 90% of the principal of new outstanding debentures divided by the conversion price. The warrants are exercisable at $2.00 each for five years.
Mercury Investments Ltd. was the placement agent.
Based in Perth, Western Australia, pSivida makes nanotechnology products used by pharmaceutical and other medical providers.
| Issuer: | pSivida Ltd.
|
| Issue: | Subordinated convertible debentures
|
| Amount: | $6.5 million
|
| Maturity: | Three years
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | Into ADS at $2.00 each
|
| Call: | Redeemable at 108% of par plus interest; may force conversion if stock trades above $4.00 for 25 consecutive trading days
|
| Warrants: | Equal to 90% of the outstanding principal divided by the conversion price
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.00
|
| Investors: | Absolute Europe Catalyst Fund, Absolute Octane Fund and Australian IT Investments Ltd.
|
| Placement agent: | Mercury Investments Ltd.
|
| Settlement date: | July 31
|
| Stock symbol: | Nasdaq: PSDV
|
| Stock price: | $2.84 at close July 28
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