impressive restructuring going on with this
HERNDON, VA, Oct 19, 2010 (MARKETWIRE via COMTEX) -- Applied Visual Sciences (APVS) announced today that, on October 15, 2010, it entered into an agreement with the holders of the company's outstanding Series A 10% Senior Convertible Debentures due November 7, 2008, that extends the maturity date of the debentures, provides that the debentures will be non-interest bearing through the date of maturity, and for certain other amendments to the terms of the debentures and related agreements.
Under the terms of the agreement, the convertible debenture holders have agreed to extend the maturity of the notes to June 30, 2011. The debenture holders agreed to waive payment of approximately $638,163 of accrued but unpaid interest, late fees, mandatory default penalties totaling $2,496,149 and other amounts due under the debentures, in consideration of which the company agreed to issue an aggregate of 2,552,653 shares. Also, the debenture holders have agreed to waive prior breaches and defaults under the debentures and related debenture transaction documents and to release the company from related claims. The remaining principal amount of the amended debentures is $1,688,205 and will be non-interest bearing through the maturity date. Subject to the company's stock satisfying certain price and volume requirements, the holders have agreed to a provision permitting the company to force a conversion of the debentures. The holders have also agreed that the company is no longer required to register under the Securities Act the resale of the shares underlying their debentures and related warrants. Currently, the debentures are convertible at a price of $0.25. The agreement contains certain other amendments, representations and warranties of the parties and conditions to closing.
In addition, the company has been advised that, in March 2010, a strategic investor in the company, Dr. Joshua P. Prager, purchased approximately $838,205 in principal amount of the outstanding convertible debentures and certain related stock warrants from three of the original institutional investors in the company's 2006 debenture offering.
