BOTHELL, Wash., June 30, 2011 /PRNewswire/ -- SCOLR Pharma, Inc. (OTC: SCLR) today announced that it has closed the second and final tranche of its previously-announced private placement of its 8% Senior Secured Convertible Debentures due 2013 (the "Debentures"). The Company raised a total of $1,190,200 in the offering. The Company intends to use the net proceeds for working capital and other general corporate purposes.
Stephen J. Turner, President and Chief Executive Officer, said: "The completion of this offering will allow us to continue to focus on the development of our nutritional business and on our efforts to secure licensing or partnership support for our pharmaceutical products. We are making good progress in placing our nutritional products on retail shelves and this capital will enable us to be even more aggressive in those efforts."
This second tranche consisted of the sale of an additional $189,000 principal amount of Debentures. The Debentures, together with accrued and unpaid interest, are convertible at the option of the holders into shares of the Company's common stock at a conversion price equal to $0.05 per share of common stock. Beginning after the date that is six months from the issuance of the Debentures, the Company may cause mandatory conversion of the Debentures following the continuance for 30 consecutive days of certain conditions, including maintenance of a volume weighted average trading price on each day within such 30 day period of $0.25 per share of common stock. The Debentures bear interest of 8% per annum, compounded quarterly, and are secured by all the Company's assets. The Company may, at any time and from time to time, upon 10 days prior notice to the holders, pay in cash all or a portion of the accrued and unpaid interest on the Debentures, or may cause conversion of such accrued and unpaid interest in connection with any mandatory conversion of the Debentures.
|SOURCE SCOLR Pharma, Inc.|
Copyright©2010 PR Newswire.
All rights reserved