PHILADELPHIA and REHOVOT, Israel, June 22, 2012 /PRNewswire/ -- Rosetta Genomics (NASDAQ: ROSG), a leading developer and provider of microRNA-based molecular diagnostic assays, today announced that the Company has entered into an agreement and release (the "Release Agreement") with the holders of the $1,750,000 senior secured debenture (the "Debenture") the Company sold and issued on January 27, 2012.
The Debenture had a maturity date of January 26, 2013 and accrued interest initially at a rate of 10% per annum, payable semi-annually. Beginning on March 15, 2012, an aggregate of $300,000 in principal amount of the Debenture became convertible, subject to certain limitations, into the Company's ordinary shares at a conversion price of $1.416 per share (after giving effect to the 1-for-15 reverse split of the Company's ordinary shares effected on May 14, 2012). The Debenture was secured by a security interest in all current and future assets of Rosetta and any current or future subsidiary, including Rosetta Genomics Inc.
Under the Release Agreement, Rosetta prepaid an aggregate of $1,450,000 in principal and $288,000 in interest and the Debenture holders agreed to convert the remaining $300,000 in principal into ordinary shares at the conversion price of $1.416 per share no later than July 31, 2012.
Upon the prepayment of the $1,450,000 in principal and $288,000 in interest, all of the Company's obligations (other than the obligation to convert the remaining $300,000 in principal amount into ordinary shares) under the transaction agreements were satisfied or terminated and the security interest in all current and future assets of Rosetta and any current or future subsidiary terminated.
"We are very pleased to pay off our secured loan as this Release Agreement not only retires our debt , it frees up our assets from the liens on them, all
|SOURCE Rosetta Genomics|
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