Business
Spectral announces settlement of $10 million debt
Spectral announces settlement of $10 million debt.
About this update from Spectral Medical Inc
[{"type":"text","content":"\n\n\n\n\nTORONTO, June 12 /CNW/ - Spectral Diagnostics Inc. (TSX: SDI), a\ndeveloper of innovative rapid diagnostic technologies, today announced that it\nhas signed an agreement with security holders of IDx Inc. to settle\n$10 million of outstanding convertible notes payable.\nUnder the terms of the settlement arrangement, the Company will issue\n4,251,258 common shares of Spectral and a $2.5 million non-interest bearing,\nunsecured, convertible note payable due December 31, 2010, as complete\nsettlement of all obligations related to the debt. In addition, the existing\n500,000 Spectral warrants exercisable at $3.00 per common share until\nNovember 3, 2008, will be cancelled and 500,000 new warrants at an exercise\nprice of $0.47 per common share, expiring June, 2011, will be issued. The\ntransaction is scheduled to close by the end of June, 2006. Upon closing, the\nCompany will recognize an accounting gain on settlement of debt of\napproximately $5 million.\n\"This is a good outcome for both Spectral and the IDx security holders\",\nstated Anthony Businskas, Executive Vice-President and CFO of Spectral. \"Our\nbalance sheet will be significantly improved and any uncertainty around the\nresolution of the IDx debt obligation will be removed. The Company will now\nfocus its energies on the development and active commercialization of its\nexisting products, as evidenced by its recent arrangements with Somagen\nDiagnostics Inc. and Toray Medical Co., Ltd.\", added Mr. Businskas.\n\nSpectral is a developer of innovative technologies for comprehensive\ndisease management. Spectral provides accurate and timely information to\nclinicians enabling the early initiation of appropriate and targeted therapy.\nCurrent products include Spectral's rapid West Nile Virus (WNV) assay and its\nFDA approved rapid diagnostic for sepsis (the EAA(TM) Assay), as well as a\nrange of other biological reagents. Spectral's common shares are listed on The\nToronto Stock Exchange: SDI.\n\nInformation in this news release that is not current or historically\nfactual information may constitute forward-looking information within the\nmeaning of securities laws. Implicit in this information, the future outlook\nof Spectral and anticipated events or results are assumptions based on beliefs\nof Spectral's senior management as well as information currently availab...