Assured Pharmacy extends tender offer to exchange 16% convertibles

By Susanna Moon

Chicago, Nov. 25 - Assured Pharmacy, Inc. said it extended the tender offer to exchange 16% senior convertible debentures and warrants to purchase common stock.

The offer will now end at 11:59 p.m. ET on Dec. 6, extended from 11:59 p.m. ET on Nov. 29.

As of Monday, holders had tendered about $915,384 of the notes for exchange or conversion, according to a company press release.

In the offer, the holders have two options:

• The issuance of restricted common stock for the settlement of the balance of the debenture, consisting of principal plus the currently outstanding unpaid interest as of Sept. 30, at $0.60 per share, with the issuance of new warrants at an exercise price of $0.60 per share for the first year and at $0.75 thereafter for the remainder of the term, with the term to be extended by an additional three years; or

• The issuance of amended and restated debentures, which include the principal balance plus accrued interest as of Sept. 30, with a reduction in the interest rate to 10% from 16%, the extension of the maturity date by an additional three years, a reduction of the conversion price to $0.75 per share and execution of a subordination agreement under which the company will make no further payments to the debt holders until the redemption of series D preferred stock and issuance of three-year warrants occurs and the conversion price is reduced to $0.75 per share.

Assured Pharmacy is a chain of specialty pharmacies based in Plano, Texas.

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