Vaso gets default notice from holder of $1.13 million of senior secured convertible notes due 2007

By Devika Patel

Knoxville, Tenn., July 30 - Vaso Active Pharmaceuticals, Inc. reported in an 8-K filed Wednesday with the Securities and Exchange Commission that received a notice of default from Iroquois Master Fund Ltd., a holder of $1.13 million of the $2.5 million senior secured convertible notes the company sold in an August 2005 private placement.

Iroquois is also the collateral agent for the notes, which were due May 1, 2007. The company admitted in the filing that it has failed to pay the principal due under the notes.

In the notice, dated July 24, Iroquois informed the company that events of default had occurred under the note and that Iroquois has elected to require the company to redeem the note at the event price, as defined in the note agreement.

The event price is equal to 115% of the outstanding principal and interest (or, if greater, 115% of the value of shares that a 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 amounts is 18%.

The company said in the filing it has also received a similar default notice from two other purchasers of the notes.

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

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