NEW YORK (GenomeWeb News) – CombiMatrix today said that it has fully repaid its secured convertible debenture held by YA Global Investments.
The debenture had an original principal amount of $10 million and was sold to the investment firm in July 2008. The note was due in July of this year, or within four months after CombiMatrix receives payment from National Union Fire Insurance Company in accordance with a $35.7 million judgment issued by the United States District Court for the Central District of California.
In late January, CombiMatrix said that it had reached a settlement agreement with National Union, under which it will receive $25 million.
CombiMatrix said that as a result of retiring the note, it also has retired the potentially dilutive reserve of approximately 1.1 million shares of common stock that could have been issued in the conversion.
"Retiring this debt strengthens our overall financial position and better positions CombiMatrix for future growth as well as attaining our strategic objectives," CombiMatrix CFO and Treasurer Scott Burell said in a statement.