AccuMed restatement nearly doubles Q2 loss
CHICAGO, Sept 12 (Reuter) - AccuMed International Inc said Friday it restated its
second-quarter loss to $4.8 million, from $2.9 million after discussions with the Securities and
Exchange Commission.
On a per share basis, the company restated its loss to $0.22 from $0.13 for the second quarter.
The pharmaceutical company made the changes after the securities regulator objected to the
conversion price of its convertible notes and warrants.
AccuMed issued $8.5 million in principle amount of convertible notes and 850,000 warrants on
March 14. The notes' conversion price and the warrants' exercise price was $3.125, $0.50 less
than AccuMed's common stock price at the time.
While AccuMed felt noteholders were unlikely to take advantage of the discount, the Securities and
Exchange Commission (SEC) believed the discount represented intrinsic value to note and warrant
holders, the company said.
The company recorded a $1.9 million charge, which is the discount's total estimated value, in the
second quarter to comply with the SEC's position.
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