BURNABY, BC, March 20 /PRNewswire-FirstCall/ - Chromos Molecular Systems Inc. ("Chromos") (TSX:CHR) announced today that the Company entered into a secured, convertible debenture agreement to borrow $400,000. The proceeds of the loan are to be used to fund expenses associated with the preparation of delinquent continuous disclosure documents and maintaining the integrity of the remaining assets of the Company. The principal and interest, at 12% per annum, are due and payable on June 30, 2008. The debenture holder has the right, upon notice, to convert all or part of the principal and unpaid interest into common shares of the Company at the conversion price of $0.03 per share. The Company also entered into a Pledge of Securities agreement as part of the security arrangement with the debenture holder for the Company's common shares in Agrisoma Biosciences Inc. ("Agrisoma"). As collateral for the convertible debenture, the Company provided the debenture holder a general security agreement providing a charge over all the Company's assets. Prior to entering into this transaction, the Company obtained a partial revocation of the existing cease trade order from the B.C. Securities Commission.
The Company has also entered into a convertible promissory note agreement (the "Agrisoma Note") to loan $500,000 to Agrisoma. Of this amount, $118,000 was funded in-kind by Chromos by offsetting it against $118,000 of amounts due from Agrisoma for license fees, rent and other services, and patent cost recoveries. The remaining $382,000 was funded in cash by Chromos to Agrisoma. The cash advanced to Agrisoma is to be used for operations. The secured Agrisoma Note, which bears interest of 15% per annum, is due the earlier of: June 30, 2008 and certain specified events. As collateral for the Agrisoma Note, Agrisoma provided the Company with a general security agreement providing a charge over all of Agrisoma's assets.
Risks and Uncertainties
Certain of the statements contained in this press release are forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Chromos, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
To the extent possible, management implements strategies to reduce or mitigate the risks and uncertainties associated with Chromos' operations. Operating risks include (i) the continued availability of capital to finance Chromos' activities; (ii) Chromos' limited cash position, and (iii) Chromos' limited operations.
CONTACT: Jeff Charpentier, Vice President, Finance and CFO, Tel: (604) 415-7132, Email:email@example.com; Alistair Duncan, President & CEO, Tel: (604) 415-7121, Email: firstname.lastname@example.org, Website: http://www.chromos.com
|SOURCE Chromos Molecular Systems Inc.|
Copyright©2008 PR Newswire.
All rights reserved