Medialink buys, cancels $2.65 million debentures for $1.59 million

By Devika Patel

Knoxville, Tenn., July 1 - Medialink Worldwide Inc. said it has extinguished its outstanding subordinated debentures.

The company paid $1.59 million for $2.65 million of debentures.

The investors continue to hold warrants for 536,729 shares. Of the warrants, 524,637 are exercisable at $0.50 per share and 12,092 warrants have a strike price of $3.99 per share. All of the warrants expire on Nov. 9.

"Acknowledging the rough economic environment and the financial condition of the company, the debenture holders were willing to take a substantial discount on the extinguishment of their debt," Medialink's chief financial officer Kenneth Torosian said in a press release.

"Extinguishing the debentures allows us to more vigorously pursue various strategic alternatives, but also puts additional time pressure on us achieving success in such efforts as the repayment required use of a significant portion of our cash balance."

Based in New York, Medialink is a multimedia communication services company.

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