HOPKINTON, Mass., June 30 /PRNewswire-FirstCall/ -- On June 25, 2008, Alseres Pharmaceuticals, Inc. (Nasdaq: ALSE), a biopharmaceuticals company engaged in the development of therapeutic and diagnostic products primarily for disorders in the central nervous system, entered a into Convertible Promissory Note Purchase Agreement, with Robert Gipson (the "Lender"), pursuant to which the Company may borrow up to aggregate principal amount of $5,000,000. Pursuant to the Purchase Agreement, the Company issued a convertible promissory note to the Lender in the aggregate principal amount of $5,000,000 (the "Note").
According to the terms of the Purchase Agreement, the Lender may elect to convert all or a portion of the outstanding principal and accrued interest under the Note (the "Total Converted Balance") into (i) shares of the Company's common stock at a conversion price of $2.50 per share or (ii) into the right to receive from the Company the following payments related to the Company's molecular imaging products: for each $1,000,000 of Total Converted Balance, (A) 2% of Pre-Commercial Income; plus (B) a royalty at a rate of 0.5% of Net Sales of Molecular Imaging Products (each as defined in the Purchase Agreement).
Robert Gipson, who serves as a Senior Director of Ingalls & Snyder LLC and a General Partner of Ingalls & Snyder Value Partners, L.P., served as a director of the Company from June 15, 2004 until October 28, 2004.
About Alseres Pharmaceuticals, Inc.
|SOURCE Alseres Pharmaceuticals, Inc.|
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