Radient Pharmaceuticals receives default notices from two noteholders

Default stems from failing to obtain approval for underlying shares

By Devika Patel

Knoxville, Tenn., June 2 - Radient Pharmaceuticals Corp. received a default notice from two investors, according to an 8-K filed Thursday with the Securities and Exchange Commission. The default allegation relates to private placements the company settled between March 22, 2010 and April 26, 2010, and the notes held by these investors have become due and payable. The investors demanded payment by June 1.

The default was due to the company failing to obtain stockholder approval for the shares underlying the notes by a certain date. Radient said it was unable to hold a meeting and obtain the required approval due to the SEC's review of the related proxy statement and periodic reports that Radient was required to submit to its shareholders with the proxy statement.

The company said it is negotiating a settlement with the noteholders, who claim they are owed $1.31 million, which includes principal, interest and penalties. The company said it is not aware of any legal action relating to the default.

Based in Tustin, Calif., Radient is a developer and marketer of In Vitro Diagnostic cancer tests.

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