NEW YORK (GenomeWeb News) – Health Discovery Corp. said Friday that a shareholder of the firm is suing it over the expiration date of certain warrants issued in September 2007 as part of a private placement.
The Savannah, Ga.-based molecular diagnostics company said that William F. Quirk, Jr., a former member of its board of directors, has sued the company claiming that since he is a 10 percent shareholder of the firm the expiration date on his warrants should be Sep. 7, 2012, rather than Sep. 7, 2010.
The warrants issued to Quirk in 2007 consist of a warrant to purchase approximately 16.2 million shares of HDC common stock at $.14 per share, and a warrant to purchase up to the same amount of shares of the firm's common stock at $.19 per share. The expiration date on the warrants is Sep. 7, 2010, but Quirk claims that the expiration date for shareholders holding more than 10 percent of HDC's shares is extended automatically by two years.
HDC said that it has engaged outside counsel to evaluate the claim and defend the firm in the action.
It also noted that, to its knowledge, Quirk is the only holder of warrants from the 2007 private placement to own more than 10 percent of HDC's common stock.
HDC currently trades at $.14 per share on the OTC Bulletin Board.