On June
9, 2008, the Company placed $20 million of senior secured convertible notes, or
the 2008 Notes, with certain institutional and accredited investors. The notes
bear interest at an annual rate of 15% payable at quarterly intervals in other
senior secured convertible promissory notes to the holder, and originally were
convertible into shares of Genta common stock at a conversion rate of 100,000
shares of common stock for every $1,000.00 of principal. As a result of issuing
convertible notes on April 2, 2009, (see below), these notes are presently
convertible into shares of Genta common stock at a conversion rate of 500,000
shares of common stock for every $1,000.00 of principal.
Certain members of
senior management of Genta participated in this offering. The notes are secured
by a first lien on all assets of Genta.
Read the above line all. Of course he said they would go BK if you did not vote yes.
So why would they participate in the notes. HMMM To increase their % of ownership.
