Sure enough GERN amends the remaining converts, lowering the conversion price to $5 from $20. Warrants, too, but we'll have to wait for the 8-K to see the exercise price. Can you say dilution? I knew you could.
>>MENLO PARK, Calif.--(BUSINESS WIRE)--May 27, 2003--Geron Corporation (Nasdaq: GERN - News) announced today that its Series D convertible debentures have been amended to provide for an automatic conversion into equity on the maturity date.
The current outstanding Series D debentures amount to $15.0 million plus accrued interest and have a maturity date of June 30, 2005. The amendment eliminates future interest accruals and provides for a fixed conversion price of $5.00 per share with a mandatory conversion date of June 30, 2005, if not previously converted. The terms of the warrants issued with the debentures were also amended to adjust the exercise prices to a premium to Geron's current market price. The exercise periods on the warrants were unchanged.
"This agreement with the holder of the debenture, to provide for the mandatory conversion of the debt into equity, changes the debt instrument into an equity instrument and eliminates the $15 million repayment obligation," stated David L. Greenwood, Geron's chief financial officer. "With this amendment, except for a minor amount of equipment financing, Geron is debt free. Combined with the $20 million financing in April, the company's cash position is improved by $35 million. In this respect, the current financial resources, including $56 million in cash, should fund the company beyond the next two years." <<
snip
See the referenced post for the old conversion price snipped from the latest 10-K.
Cheers, Tuck |
