Radient Pharmaceuticals amends terms of $4.95 million of convertibles

Conversion formula, dates revised; investors get 17 million shares

By Devika Patel

Knoxville, Tenn., Aug. 2 - Radient Pharmaceuticals Corp. amended the terms of its $4.95 million of 4% convertible notes on Aug. 1, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The notes are held by Iroquois Master Fund Ltd., Cranshire Capital, LP, Freestone Advantage Partners, LP, Bristol Investment Fund, Ltd. and Kingsbrook Opportunities Master Fund LP. The investors received 17 million common shares for agreeing to the changes.

The company modified the automatic conversion price so that it would be equal to the lower of the conversion price and the product of 70% multiplied by the quotient of the sum of each of the three lowest closing bid prices of the stock during the 20-consecutive-trading-day period immediately preceding the installment date.

The installment dates are Aug. 22, Sept. 22, Oct. 20 and the maturity date, Dec. 1, 2011.

The triggering event may occur on each pre-automatic conversion date. The pre-automatic conversion dates are the date the notes are issued, Aug. 24, Sept. 22 and Oct. 20.

The automatic conversion dates will now be Aug. 22, Sept. 22, Oct. 20 and Nov. 17.

The notes were issued in exchange for $8.44 million of convertibles in June after the company defaulted on the original notes.

Based in Tustin, Calif., Radient is a developer and marketer of in vitro diagnostic cancer tests.

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