Pernix Therapeutics Holdings Inc. (fka PTXTQ)

[boston745]

I agree the news is good for the company, not for the long-term investor. Senior notes are exchangable for shares and PRICE adjust. That means funds will short the stock to lower adjustment price to gain more shares. Toxic financing at its finest.

Chapter 11 would have been more painful upfront this will be more painful long-term. Good for day traders, swings, & shorts though.

The exchange of $51,775,000 aggregate principal amount of Pernix’s outstanding 4.25% Convertible Senior Notes due 2021 held by certain holders of such notes for the issuance by the Company to such holders of 1,100,498 newly issued shares of Pernix’s common stock and the issuance by a wholly-owned subsidiary of the Company to such holders of $36,240,500 aggregate principal amount of 4.25%/5.25% Exchangeable Senior Notes due 2022 (the “Exchangeable Senior Notes”). The Exchangeable Senior Notes are guaranteed by Pernix and its wholly-owned subsidiaries, and are initially exchangeable for Pernix’s common stock at an exchange price of $5.50 per share, subject to adjustment from time to time upon the occurrence of certain events. The Exchangeable Senior Notes will be exchangeable into cash, shares of Pernix's common stock or a combination thereof, at the issuer’s election. The Exchangeable Senior Notes will be senior, unsecured obligations of the issuer, and interest will be payable semi-annually in arrears. Interest on the Exchangeable Senior Notes accrues in cash or a combination of cash and in-kind interest at the issuer’s election.