Vaso Active Pharmaceuticals defaults on notes issued in August 2005 PIPE

By Sheri Kasprzak

New York, May 2 - Vaso Active Pharmaceuticals, Inc. said it failed to repay the principal on the maturity date of its $2.5 million in senior secured convertible notes.

"On May 1, 2007, the company failed to pay the principal amount outstanding under the notes," the company said in an 8-K filed Wednesday with the Securities and Exchange Commission.

"Under the terms of the notes, this may be deemed an event of default, which gives the holders of the notes the right to require the company to repurchase the notes at 115% of the outstanding principal and interest (or, if greater, 115% of the value of the shares that such holder could receive upon conversion of the notes, based on a five-day trading average price).

"In addition, the default rate of interest on any unpaid amount is 18%."

The notes were issued in August 2005 in principal of $2.5 million. The notes originally bore interest at Libor plus 600 basis points with a 10% floor and 12% ceiling.

Vaso Active develops over-the-counter drugs. The company has headquarters in Danvers, Mass.

On Wednesday, the company's stock remained unchanged at $0.20 (OTCBB: VAPH).

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