pSivida to redeem convertible debt including notes from July 2006 PIPE

By Laura Lutz

Des Moines, April 30 - pSivida Ltd. plans to redeem all of its outstanding convertible notes, including 8% subordinated convertible debentures issued in a private placement that settled on July 31, 2006.

Of the debentures, A$6.5 million were converted in April and A$1.1 million remain outstanding.

The three-year debentures were purchased by Absolute Europe Catalyst Fund, Absolute Octane Fund and Australian IT Investments Ltd. They are convertible into American depositary shares at US$2.00 each.

The company also has A$15.4 million principal amount outstanding under a convertible loan from Sandell Asset Management Corp.

The company has placed A$16.4 million in cash into escrow for the redemptions, which are expected to occur before Sept. 28, 2007.

Based in Perth, Western Australia, pSivida makes nanotechnology products used by pharmaceutical and other medical providers.

The company's stock dropped 1 cent to close at US$1.77 on Monday (Nasdaq: PSDV).

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