ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
Please see the disclosure under Item 3.02 herein.
ITEM 3.02 UNREGISTERED SALES OF EQUITY SECURITIES.
On June 15, 2006, Xechem International, Inc. reached final agreement with
Marjorie Chassman ("Chassman") regarding a bridge loan financing, whereby
Chassman agrees to loan $1,025,000 to Xechem, in two tranches, one in the amount
of $500,000 and the other in the amount of $525,000. The first tranche of
$500,000 was infused on Friday, June 9, 2006. The second tranche of $525,000 is
due by Friday, June 23, 2006. The note has been negotiated to convert into
shares of our common stock at $0.015 per share (approximately 66,666,667 shares,
excluding interest). The note bears interest at 8% and is due May 31, 2008. As
additional consideration for infusion of the capital, Xechem will issue Chassman
66,666,667 warrants, exercisable at $0.02 per share for a period of 5 years. In
addition, Chassman has agreed to extend the due date on all existing notes held
by the Company to May 31, 2008. The loan has not been documented at this time.
Upon documentation, it will be filed as an exhibit.
Over the period from June 2, 2006 through June 5, 2006, Chassman infused
$200,000 into Xechem. On June 15, 2006, the parties reached final agreement as
to the terms: the note will be issued to Chassman in the amount of $200,000, it
will bear interest at 8% and is due May 31, 2008. The note is convertible into
shares of our common stock at $0.01 per share (20,000,000 shares, excluding
interest). The loan has not been documented at this time. Upon documentation, it
will be filed as an exhibit.
Over the period from February 22, 2006 through May 10, 2006, Chassman
infused $780,000 into Xechem, as reflected in Xechem's annual and quarterly
reports. On June 15, 2006, the parties reached final agreement as to the terms:
the note will be issued to Chassman in the amount of $780,000, it will bear
interest at 8% and is due May 31, 2008. The note is convertible into shares of
our common stock at $0.005 per share (approximately 156,000,000 shares,
excluding interest). The loan has not been documented at this time. Upon
documentation, it will be filed as an exhibit.
The Company relied upon the exemption from registration available under
Section 4(2) of the Securities Act of 1933, as amended. The Bridge Loan
Financing participant is an accredited investor, small in number, and has had
access to information about Xechem.
ITEM 8.01 OTHER EVENTS.
During the period from April 6, 2006 through June 8, 2006, Xechem
International, Inc., converted Xechem debt (in the form of principal and
interest) in the aggregate amount of approximately $563,000 ($526,000 of which
was principal and $37,000 of which was interest) into approximately 144,511,809
shares of Xechem's common stock (exercised at conversion rates between
$0.0025-$0.0075 per share), representing approximately 12% of Xechem's currently
issued and outstanding stock.
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