Radient Pharmaceuticals gets default waiver for 12% convertible notes

Company resolves to hold meeting by Nov. 15, make payments this month

By Devika Patel

Knoxville, Tenn., Oct. 15 - Radient Pharmaceuticals Corp. reported that it incurred a trigger event under its 12% convertible notes. The investors have agreed to waive the company's default, provided that it resolves the default.

In an 8-K filed Friday with the Securities and Exchange Commission, the company reported that it failed to have the notes' registration statement declared effective by June 1, which constituted the trigger event. It also defaulted under the note agreement since it did not hold a related shareholder meeting by Aug. 31.

As a result, the noteholders can declare the full amount of the note automatically due. Many of the investors, however, chose to waive this default and gave the company until Nov. 15 to hold the meeting.

The first interest payment, and an additional installment payment, for the notes are due this month. The company said it anticipates making these payments and holding the meeting by Nov. 15, as planned.

It has increased the note's interest to 18% and also increased the principal balance.

The notes were issued in several financings during the first and second quarter of this year.

Radient is a Tustin, Calif., pharmaceutical company.

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