Life Medical Sciences Announces Debt-to-Equity Conversion Plan

Strategic Insights -

Life Medical Sciences, Inc., a New Jersey-based company, has announced a plan to convert $638,313 of principal and accrued interest into 283,695 shares of common stock. The conversion is a result of a Board of Directors resolution, permitting the debt-to-equity swap for Dr. Herbert Moskowitz, Mr. Irwin M. Rosenthal, and Mrs. Miriam Gold. The Company aims to exchange loans made in 1992 for an investment stake in its future, highlighting its focus on advanced medical technologies, particularly CarielTM Dermal, which is in Phase II/III clinical trials in Europe.

Key Takeaways:

  • The debt-to-equity conversion plan involves the issuance of 283,695 shares of common stock to Dr. Herbert Moskowitz, Mr. Irwin M. Rosenthal, and Mrs. Miriam Gold, valued at $638,313.
  • The conversion rate is based on the market valuation of the shares as of October 30, 1994.
  • Dr. Moskowitz, Chairman of the Board of Directors, believes the Company's current focus on CarielTM Dermal has significant market potential for the treatment of chronic dermal ulcers.
  • The debt for equity conversion will benefit the Company by improving its balance sheet, according to Dr. Moskowitz.
  • The additional shares will increase the number of shares of common stock outstanding to 4,308,000.
  • The new stock will be subject to the provisions of Rule 144, but may be registered under certain circumstances for a period of 10 years commencing January 1, 1995.
  • Life Medical Sciences, Inc. is developing a topical wound healing agent, CarielTM Dermal, which will focus primarily on the treatment of chronic wounds and ulcers.
  • Joel L. Gold, a member of the Company's Board of Directors, is cited as having a named spouse, Mrs. Miriam Gold, as a beneficiary of the debt conversion.

Statistics:

  • $638,313: The amount of principal and accrued interest being converted into 283,695 shares of common stock.
  • 283,695: The number of shares of common stock being issued to Dr. Herbert Moskowitz, Mr. Irwin M. Rosenthal, and Mrs. Miriam Gold.
  • 4,308,000: The new number of shares of common stock outstanding after the debt conversion.
  • 10 years: The duration for which the new stock may be registered under certain circumstances, commencing January 1, 1995.
  • 1992: The year in which the Company made the loans being converted into equity.
  • 1994: The year in which the Company's market valuation was used to determine the conversion rate.
  • 1995: The year in which the 10-year registration period for the new stock commences.

Sources:

  • Business Wire, November 28, 1994