SALT LAKE CITY, Nov. 8, 2010 /PRNewswire-FirstCall/ -- TechniScan, Inc. (OTC Bulletin Board: TSNI) a medical device company engaged in the development and commercialization of an automated breast ultrasound imaging system, today announced a restructuring of its convertible debt.
TechniScan entered into amendments with each note holder, effective as of October 28, 2010, to extend the maturity date of its entire portfolio of secured convertible promissory notes from October 31, 2010 to January 31, 2011. The maturity date of the notes may be further extended to April 15, 2011 at request of the company and with agreement from first lien holders of the notes.
"This restructuring of the debt instruments currently owed TechniScan will allow us time to focus on the financing, FDA approvals, and other activities we will need to accomplish to be successful," said David Robinson, TechniScan's CEO. "The fact that our note holders were all willing to work with us is a sign that we're on the right track with our focus and priorities."
As part of the extension of the maturity date of the notes, the company issued the holders of the notes their pro rata share of an aggregate of 275,000 shares of its restricted common stock and warrants to purchase 1,026,126 shares. The exercise price per share is $2.68, subject to customary adjustments set forth in the warrants. The warrants will expire five years from the date of grant.
Additionally, all note holders have agreed to forego their conversion rights until the maturity date of the notes, provided they are repaid within five days of the closing of a qualified financing occurring prior to the maturity date. If TechniScan closes a qualified financing prior to the maturity date of the notes, it has the option to allow the note holders to choose whether to convert their notes or be repaid.
About TechniScanTechniScan, Inc. is a medical device company engaged in the development and commercialization of a non-invasive imaging tool designed to provide physicians with automated ultrasound images of the human breast. TechniScan's WBU™ imaging device is limited by U.S. law to investigational use unless, and until, cleared by the FDA. For more information, please visit www.tsni.com.
Forward Looking StatementsCertain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate, "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "potential," "intend," and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of TechniScan, Inc. (the "company") to be materially different from those expressed or implied by such forward-looking statements. The company's future operating results are dependent upon many factors, including risk factors discussed in the company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov, including the company's Annual Report on Form 10-K filed on March 22, 2010. The company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.For More Information:Press and MediaDave RobinsonTechniScan, Inc.(801) firstname.lastname@example.org
|SOURCE TechniScan, Inc.|
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