Vaso Active receives notice of default on notes issued in August 2005

By Sheri Kasprzak

New York, May 24 - Vaso Active Pharmaceuticals, Inc. said Thursday in a form 8-K filed with the Securities and Exchange Commission that it allegedly defaulted on $2.5 million in 18% notes issued in August 2005.

Holder Portside Growth and Opportunity Fund issued a notice to Vaso stating that an event of default had occurred on the notes and has elected to require Vaso to redeem the notes.

The redemption price is equal to 115% of par plus interest.

"To date, the company has not received similar default notices from the other purchasers of the notes or from Iroquois Master Fund, LP, a holder and collateral agent for [the other] purchasers of the notes," the company said in the 8-K. "As previously disclosed, the company has been in discussions with representatives of Iroquois regarding the terms of a possible restructuring of these obligations, but no agreements have been reached."

The notes originally bore interest at Libor plus 600 basis points with a 10% floor and 12% ceiling.

Based in Danvers, Mass., Vaso develops over-the-counter drugs.

Vaso's stock fell by a penny on Thursday to end at $0.14 (OTCBB: VAPH).

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