NEW YORK (GenomeWeb News) – Warnex said this week that the conversion of debentures into shares of the company will provide Persistence Capital Partners with a nearly 52 percent stake in the firm.
The conversion of C$725,000 in principal amount of debentures into an aggregate of 46,178,344 common shares of Warnex was set to take place yesterday.
The Montreal-based private equity firm also has given Warnex until April 13 to repay the remaining balance of approximately C$959,420 owed under the debentures. Warnex is currently working on putting in place a C$2 million credit facility, which would provide it with funds to repay the outstanding balance of the debentures.
Laval, Quebec-based Warnex also reported yesterday that its fiscal-year 2011 revenues declined 4 percent to C$21.3 million from C$22.3 million. The firm, however, posted a profit of C$500,000, or C$.01 per share, compared to a net loss in 2010 of C$1.7 million, or C$.03 per share.
Warnex also said that has named Marc Lebel as its interim CEO.
The firm is currently assessing its strategic alternatives. In February, Warnex said that the planned sale of its Analytical Services division had fallen through "due to the failure of its prospective purchaser to perform its obligations as contemplated by the binding agreement entered into between the parties."