Synova Completes Sale of $3.3 Million in Senior Convertible Notes an...( MEDIA Pa. Sept. 20 /- Synova Heal...),Health

MEDIA, Pa., Sept. 20 /PRNewswire-FirstCall/ -- Synova Healthcare Group, Inc. (OTC Bulletin Board: SNVH), today announced that it completed the sale of approximately $3.3 million in aggregate notional principal amount of its 6.5% senior convertible promissory notes, Series B, due September 19, 2012, and related common stock purchase warrants. This sale was effected as the initial part of an ongoing private placement of notes and warrants in the aggregate notional principal amount of up to $5 million. The notes were sold to certain accredited investors and foreign investors.

The notes mature on September 19, 2012 and are convertible into shares of Synova common stock at a conversion rate of one share for every $1.00 of principal and accrued and unpaid interest converted, subject to anti-dilution adjustments for certain corporate transactions. Synova's obligations under the notes are unsecured.

As part of this offering, Synova issued a warrant to each purchaser of the notes. The warrants have a term of five years and are exercisable for shares of Synova common stock at a price of $1.00 per share, subject to anti-dilution adjustments for certain corporate transactions. Each warrant entitles the holder to acquire a number of shares of Synova common stock equal to 180% of the number of shares that such holder could acquire upon conversion of such holder's notes. Synova will use the net proceeds received from this offering to provide continued investment in the Today(R) Sponge, to further expand its growing portfolio of women's health care products, and for general corporate purposes.

The offer and sale of these notes required the consent of the holders of Synova's existing 6.5% senior convertible promissory notes due January 12, 2012. As consideration for these consents and certain other waivers of, and amendments to, various agreements related to the January notes, Synova and its subsidiaries agreed to grant to the holders of the January notes a
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