Donlar Biosyntrex Corporation Announces Major Financial Restructuring.Business Editors BEDFORD PARK Bedford Park is the name of several places around the world:
Donlar Biosyntrex Corporation (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). : DBSY), and its parent company, Donlar Corporation (together, the Company), leaders in green chemistry, products and technology, today announced that they had reached agreement with their principal investors to a major multi-step, financial restructuring, and had completed the first phase of the restructuring. This phase results in a major reduction in the total debt outstanding and a restructuring of the remaining debt that strengthens the Company's balance sheet while significantly reducing its ongoing interest expense. The Company's outstanding notes payable will be reduced from $38 million to $19.2 million as a result of these transactions. Two primary lenders have agreed to exchange their existing debt for $18 million of a new series of senior convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". at a conversion price of $0.68 per share. The Company will also exchange debt owed to other lenders for $1.9 million of the new senior convertible preferred stock at the same conversion price. The Company restructured the remaining indebtedness to its principal lender into two five-year notes, a low interest note for $9 million and another note for $10.2 million, for a total of $19.2 million. These notes are convertible into shares of the Company's common stock at a conversion price of $0.68 per share. Larry Koskan, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of the Company said, "We are very pleased that these important investors have finalized their decisions to restructure the Company's debt. These transactions allow the Company's management team to focus more of its energy on the Company's growing businesses and the expansion of the introduction of the Company's environmentally friendly Environmentally friendly, also referred to as nature friendly, is a term used to refer to goods and services considered to inflict minimal harm on the environment.[1] technologies". About Donlar Donlar Biosyntrex Corporation is at the forefront of providing a new class of protein biopolymers that help customers by providing solutions while satisfying environmental concerns for the creation of non-toxic products for a wide range of industrial, agricultural and consumer markets. The Company's 140 global patents protect its non-hazardous, non-toxic, hypoallergenic hy·po·al·ler·gen·ic adj. Having a decreased tendency to provoke an allergic reaction. hypoallergenic (hī´pōal´urjen´ik), adj , environmentally friendly and biodegradable thermal polyaspartate (TPA (Transient Program Area) See transient area. TPA - Transient Program Area ) biopolymers, technology and marketplace. The Company's applications for its products include the markets of oil field operations, fertilizers, detergents and water treatment. Donlar's beta-protein biopolymers are manufactured in its 50,000 square foot facility located in Peru, Illinois Peru is a city in LaSalle County, Illinois, United States. The population was 9,835 at the 2000 census. Geography Peru is located at (41.334458, -89.127385). . (www.donlar.com) This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in the forward-looking statements, which involve a number of risks and uncertainties. The contents of this release should be considered in conjunction with the risk factors in Donlar Biosyntrex's most recent filings with the Securities and Exchange Commission on Forms 10-QSB and 10-KSB and current reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. . |
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