MONTVALE, N.J., Feb. 24 /PRNewswire-FirstCall/ -- Synvista Therapeutics, Inc. (NYSE Alternext US: SYI) today announced that it has entered into agreements with the current holders of its Series B Preferred Stock, $0.01 par value per share, under which $2,875,000 in accrued dividend obligations relating to the Series B Preferred Stock as of December 31, 2008 has been converted into senior secured promissory notes, due three years from the date of issuance. Interest at the rate of 1.25% per year shall be payable on the notes at maturity. The notes are secured by all of the Company's diagnostic assets, including the Company's HAPTOCHEK(TM) clinical diagnostic test for Hp2-2 diabetes, and its test to measure CML (carboxy-methyllysine), another potential cardiovascular risk marker.
The holders of the Series B Preferred Stock have waived their rights to receive accruing dividends in cash during the term of the notes, provided there is no event of default under the notes and the notes remain outstanding. If the notes are repaid pursuant to the terms of the notes, and the Series B Preferred Stock remains outstanding at that time, the right of the Series B holders to receive any future dividends in cash shall resume. In addition, the right of the Series B holders to receive any accrued dividends in cash will resume upon the maturity of the notes.
The Company also announced that it has notified NYSE Alternext US LLC of its intent to voluntarily delist its common stock from trading on the NYSE Alternext. Following the delisting, the Company intends to voluntarily terminate the registration of its common stock under the Securities Exchange Act of 1934, as amended ("Exchange Act"), and thereafter to cease filing reports with the Securities and Exchange Commission ("SEC").
As previously announced on December 24, 2008, Synvista is currently not in compliance with certain NYSE Alternext continued listing standa
|SOURCE Synvista Therapeutics, Inc.|
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