PROTALIX BIOTHERAPEUTICS, INC. (PLX)

[Phantom Lord]

I'll start with attempting to answer your questions & then give a little summary of my interpretation. As a disclosure all numbers in this post are approximate.

1. In accordance with this filing there is $8.55 million of notes issued that are due by 2022.

2. The conversion rate is fixed but can change under certain circumstances of which I don't believe have been disclosed. Most likely this conversion rate will remain the same. Upon maturity, and conversion, $PLX has the option to settle the debt in either cash, shares, or a combination of the two.

3. & 4. The difference between the 4.5% notes & the 7.5% notes is just the interest rate. I know for a fact that the 7.5% notes pay out the interest semi-annually at 7.5% annum. So basically 7.5% a year but split into ~3.75% semi-annually.

Below is a timeline of the convertible notes issued by $PLX w/ links to the corresponding PRs:

In September of 2013 they issued $69 million of 4.5% notes due in 2018. These notes had a conversion rate of ~173 shares per $1000 or $5.76 per share. Press Release

In December of 2016 $PLX exchanged $54 million of the above 4.5% notes for $40 million of 7.5% notes due in 2021. Conversion rate on these is ~1,176 shares per $1000 or $.85 per share. In addition to this exchange they issued another $22.5 million of these notes. Press Release

In July 2017 $PLX exchanged $9 million of the 4.5% notes due in 2018 for $8.55 million of newly issued 4.5% notes due in 2022. At the same time the issued another $10 million of the 7.5% notes due in 2021. Press Release


Summary of Convertible Notes (Running totals in bold):

Issued $69 million of 4.5% notes due 2018

$69 million of 4.5% notes due 2018

Exchanged $54 million of 4.5% notes due in 2018

$15 million of the notes due in 2018

Issued $62.5 million of 7.5% notes due in 2021

$15 million of the notes due in 2018 & $62.5 million of 7.5% notes due in 2021

Exchanged $9 million of the 4.5% notes due in 2018.

$6 million of 4.5% notes due in 2018 & $62.5 million of 7.5% notes due in 2021

Issued $8.55 million of 4.5 notes due in 2022

$6 million of 4.5% notes due in 2018, $62.5 million of 7.5% notes due in 2021, & 8.55 million of 4.5% notes due in 2022

Issued $10 million of 7.5% notes due in 2021

$6 million of 4.5% notes due in 2018, $72.5 million of 7.5% notes due in 2021, & $8.55 million of 4.5% notes due in 2022

The above ending total accounts for all notes issued and/or exchanged but does not take into account any converted notes.

Below shows the notes that have been converted:

Between 12/31/16 & 6/30/17 ~4.9 million notes were converted to common stock. This comes from the 10Q filed on 8/9/2017 found on page 3 HERE. This is ~4.2 million shares from the conversion of $3.6 million of the 4.5% notes due in 2022 & ~700k shares (I'm assuming) from the conversion of ~$10.8 million of the 7.5% notes due in 2021. The rest of this $10.8 million of converted notes was settled in cash. This information can be found in the press release issued 8/9/2017 HERE & the cash settlement can be confirmed on page 4 of the 10Q, filed on 8/9/2017, under the cash flows from financiang activities section HERE.


Continuation of the running total of notes including conversions:

$6 million of 4.5% notes due in 2018, $72.5 million of 7.5% notes due in 2021, & $8.55 million of 4.5% notes due in 2022

Conversion of $3.6 million of 4.5% notes due 2022 for shares.

$6 million of 4.5% notes due in 2018, $72.5 million of 7.5% notes due in 2021, & $4.95 million of 4.5% notes due in 2022

Conversion of $10.8 million in 7.5% notes due in 2021 in cash & shares, mostly cash.

$6 million of 4.5% notes due in 2018, $61.7 million of 7.5% notes due in 2021, & $4.95 million of 4.5% notes due in 2022

So their numbers from the latest filings & presentation check out.


Since they can settle the conversion of these notes in either cash or shares the fact that they did not receive enough votes to increase the authorized shares to 350,000,000 does not matter a whole lot. While the extra authorized shares would have given them more options they were not necessary. With the announcement of the licensing agreement with Chiesi we should see more than enough cash flows in the future to settle any conversions that happen.