August 25, 2016 7:57am

A good move re debt,  probably forced; increases dilution (6.1 M shares) hurting share pricing as well as Boyalife's "control". Stock DOWN -24% in pre-market ...

 


 

KOOL has converted a senior secured three year convertible debenture of $12.5 M of principal and $8.25 M of interest to 6,102,941 shares of its common stock.

The conversion was effected in accordance with the previously announced purchase agreement entered into between Cesca Therapeutics and Boyalife USA, dated February 2, 2016.

It releases KOOL from all security interest and liens previously placed against the company’s assets and eliminate Boyalife’s entitlement to certain participation rights in, or consent rights over, potential future equity and debt financings.

 

The Bottom Line: A smart move probably forced; increases dilution - 61. M new shares but as a result of the conversion, Boyalife’s total holding in KOOL will increase to 6,838,235 shares, or 70% of shares outstanding. KOOL’s Board of Directors will increase to seven members of which Boyalife will have the right to designate three.

KOOL closed at $3.97 and is DOWN -24% in pre-market