Transgenomic extends waiver on borrowing base limitation on $7.5 million credit line

By Sheri Kasprzak

Atlanta, March 18 - Transgenomic Inc. said Laurus Master Fund Ltd. has granted the company an extension on a waiver of the borrowing base limitation related to a $7.5 million revolving line of credit.

The extension will allow Transgenomic to borrow on the credit line from March 19, 2005 through March 31, 2006.

The tenor of the credit line had originally been through the end of 2005.

The company first entered into the credit agreement with Laurus on Dec. 3, 2003. The terms allow Transgenomic to borrow upon the line and pay the principal and interest in capital stock at a conversion price in excess of the trading price over 10 trading days before the execution of the agreement.

Laurus also converted $1,879,200 in a series B secured convertible minimum borrowing note issued in December 2003 into 3.6 million common shares.

Based in Omaha, Neb., Transgenomic produces research tools and related products for the genetic and molecular diagnostics industries. The company plans to use the extension and the proceeds from the conversion for operations.

On Friday, Transgenomic's stock closed up $0.19 at $0.77.

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