NEW YORK (GenomeWeb News) – Rosetta Genomics today said that it has entered into an agreement with holders of its $1.75 million senior secured debenture, paying off the secured loan and regaining all rights to its assets.
Rosetta entered into the agreement with the debenture holders in late January. Under that agreement, the debentures had a maturity date of Jan. 26, 2013 and were to accrue interest at 10 percent annually, payable semi-annually. Beginning on March 15, $300,000 in principal amount of the debenture became convertible at a conversion price of $1.416 per share, based on the firm's subsequent one-for-15 reverse stock split.
The debenture had been secured by a security interest in Rosetta's assets. Under the release agreement announced today, Rosetta paid an aggregate of $1.45 in principal and $288,000 in interest to the holders, who also agreed to convert the remaining $300,000 in principal into ordinary shares at the $1.416-per-share conversion price no later than July 31, 2012.
"We are very pleased to pay off our secured loan as this release agreement not only retires our debt, it frees up our assets from the liens on them, allowing us to monetize these assets through potential licensing, partnership, or other arrangements," Rosetta President and CEO Kenneth Berlin said in a statement.