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Kalytera Announces Intention to Seek Amendment of Secured Convertible Debentures Due December 2019
Kalytera Announces Intention to Seek Amendment of Secured Convertible Debentures Due December 2019.
About this update from Claritas Pharmaceuticals Inc.
[{"type":"text","content":"\n SAN FRANCISCO and TEL AVIV, Israel, Dec. 20, 2019 (GLOBE NEWSWIRE) -- Kalytera Therapeutics, Inc. (TSX VENTURE: KLY and OTCQB: KALTF) (the \"Company\" or \"Kalytera\") today announced that it has not paid the principal (in the amount of C$453,000) and interest (in the amount of C$19,323.96) owing on its 9% secured convertible debentures due December 20, 2019 (the “Debentures”).  The Company instead intends to seek approval from the TSX Venture Exchange (the “TSXV”) and the holders of outstanding Debentures (collectively, the “Holders”) to extend the maturity date thereof to December 20, 2020 and to reduce the conversion price of the Debentures to C$0.05 per Common Share (from C$0.13 per Common Share). There is no assurance that the amendments requested by the Company will be approved by the TSXV or the Holders.  If the requested amendments are not approved, the Company intends to pay all amounts outstanding under the Debentures at the closing of the first to occur of either (1) the Company’s next financing; or (2) a license transaction relating to the Company’s GVHD program, each of which transactions are anticipated to occur prior to March 15, 2020. Pending the approval of the requested amendments to the Debentures or the repayment of all amounts owing thereunder, the Company will be in default of the terms of the indenture entered into between Kalytera and TSX Trust Company (the “Trustee”) dated December 20, 2017 (the “Indenture”).  This may entitle the Holders, acting through the Trustee, to exercise available remedies under the Indenture and related security agreements.  The Company intends to either extend the maturity date of the Debentures with the approval of the Holders, pay all amounts outstanding under the Debentures or otherwise seek forbearance from the Holders prior to any enforcement action being taken. The Company is currently engaged in significant efforts to do so, though there can be no assurance that such efforts will be successful. The Company will provide an update with respect to these matters once it has determined that further disclosure is appropriate or required by law. About Kalytera TherapeuticsKalytera Therapeutics, Inc. (\"Kalytera\") is pioneering the development of a next generation of cannabinoid thera...