Form 8-K for BOHAI PHARMACEUTICALS GROUP, INC.
9-Oct-2012
Item 8.01 Other Information
On January 5, 2010, Bohai Pharmaceuticals Group, Inc. (the "Company") entered into a Securities Purchase Agreement with certain accredited investors (the "Investors"), for which Euro Pacific Capital, Inc. ("Euro Pacific") is acting as representative, whereby the Company issued two-year convertible notes in the aggregate amount of $12 million (collectively, the "Notes") and warrants to purchase shares of the Company's common stock. As of the date of this Report, there is currently $9.41 million due under the Notes and the maturity date of the Notes, as extended by the Second Amendment to the Notes, was October 5, 2012.
We had previously established an RMB denominated escrow account in China and deposited into such escrow account the remaining outstanding amount of the Notes. As of the date of this Report, the escrow account remains in place and we continue to work on converting RMB to Dollars in order to make payments under the Notes. However, we were not able to accomplish this by October 5, 2012, partially due to a one-week national holiday which ended on October 8, 2012. The Company is currently working with Euro Pacific as representative of the Investors on an amendment to the Notes which would extend the maturity date of the Notes further. As of the date of this Report, no written agreement has been entered into in this regard. We will continue to work with Euro Pacific on this matter and will continue our efforts in order to meet our obligations to the Note holders.
To demonstrate the Company's efforts to repay the Notes, the Company expects to pay the quarterly interest of the Notes due October 5, 2012 during the week of October 8th and repay up to 10% of the $9.41 million principal currently due under the Notes as soon as practicable thereafter.
