CalciTech Ltd.(Plus Markets:CLK)(OTCBB: CLKTF) CalciTech announced today it has created a new series of subordinate convertible debenture notes with a value of USD 5 million. The notes will carry a coupon of 4% per annum payable quarterly with maturity in two years from the date of issue. Holders of the notes will be able to convert the instrument into CalciTech Ltd. ordinary shares at a price of USD 0.40 per share. All other terms and conditions will remain the same as for other outstanding notes issued by the Company.
Epsom Asset Management Ltd., who has provided funding facilities for the Company for some years, has agreed to convert USD 1,500,000 of its outstanding credit facility as at 31st December 2009 into the aforementioned notes. This increases the working capital availability for the current financial year to USD 2,200,000 and extended until 31st August 2011.
Roger Leopard, CalciTech CEO, stated, "We are pleased with Epsom having agreed to a conversion into the new series of convertible notes and extension of the credit facility. The additional notes are available to fund pre-project finance and subordinate debt into planned projects."
The directors of the company take responsibility for this announcement.
This press release contains "forward looking statements" including forward looking statements as that term is defined in section 27a of the United States Securities Act of 1933 and section 21e of the Securities and Exchange Act of 1934. Statements in this press release, which are not purely historical are forward looking statements and include any statements regarding beliefs, expectation or intentions concerning the future. Forward looking statements in this press release include, but are not limited to statements which are subject to a number of contingencies and uncertainties, including, but not limited to, market acceptance for CalciTech's products, manufacturing of CalciTech's products in a commercial setting, obtaining adequate financing and construction management for production and obtaining appropriate permits.
It is important to note that the corporation's actual outcomes may differ materially from those in forward looking statements contained in this press release. Although the company believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations and intentions will prove to be accurate. Readers should refer to the risks disclosures in the company's public filings with the Securities and Exchange Commission.