Viking Systems lowers conversion, strike prices after failure to meet milestone

By Laura Lutz

Des Moines, Oct. 4 - Viking Systems, Inc. lowered the conversion price on $15.77 million of securities and associated warrants after failing to meet an operational milestone, according to an 8-K filing with the Securities and Exchange Commission.

Viking lowered the conversion price on $7.98 million of convertible debentures to $0.12 from $0.18 and the conversion price on $7.79 million of series B preferred stock to $0.146 from $0.18.

The exercise price of the associated warrants was also lowered to $0.12 from $0.18.

The warrants associated with the preferreds are now exercisable for 33,333,333 shares, up from 22,222,222 shares before the strike price was lowered.

The warrants associated with the debentures are exercisable for 22,157,026 shares, unchanged since before the announcement.

The company did not meet the operational milestone because a certain deal that was reported in the company's preliminary financial results, reported in an 8-K filed on Oct. 1, will not be treated as a sale in the quarter ended Sept. 30.

Based in La Jolla, Calif., Viking develops three-dimensional endoscopic vision systems used in minimally invasive surgery.

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