Aug 25 2009
BioTime, Inc. (OTCBB: BTIM) announced today that it has completed an Exchange Offer to the holders of notes issued under its revolving line of credit agreement. BioTime issued 1,989,515 common shares and warrants to purchase 100,482 common shares in exchange for notes in the aggregate principal amount of $3,349,259. BioTime also paid interest in the aggregate amount of $294,351 on the notes tendered in the exchange offer.
The warrants issued in the exchange offer are exercisable at a price of $2.00 per share, subject to adjustment under the terms of a Warrant Agreement governing the warrants, and will expire at 5:00 p.m., New York time, on October 31, 2010.
Revolving credit notes in the amount of $150,000 remain outstanding and will be payable with accrued interest upon maturity on December 1, 2009 unless converted into equity by the note holders per the terms of the revolving line of credit agreement. BioTime has no other outstanding indebtedness other than accounts payable and similar contractual obligations arising in the ordinary course of business.
“The conversion of the revolving line of credit to shareholders’ equity earlier than required under its revolving line of credit agreement is consistent with BioTime’s goal of listing on a national exchange,” said Michael D. West, BioTime’s CEO. “This exchange of debt to equity leaves BioTime essentially debt-free and with cash reserves of approximately $8,000,000 as of July 31, 2009. Together with the $4,700,000 grant awarded from the California Institute of Regenerative Medicine and revenues from marketed products, BioTime has sufficient capital to execute the next several phases of our business plan even prior to the conversion of our outstanding warrants, which has the potential to add over $25 million of additional cash to our balance sheet.”