Advanced Medical Isotope Corp. (OTCMKTS:ADMD) a company engaged in the development of advanced brachytherapy devices provided information on conclusion of the initial steps of its capital restructuring plan. It stated that it finalized a deal with Carlton Cadwell and his affiliated firms to convert long term debt of $5 million into a new series of equity based convertible preferred stock. Cadwell is the primary lender of the company.
Advanced Medical also announced that various other lenders have approved debt conversion terms. It will be converted at a fixed rate of $0.015 per share and will be classified as equity on the balance sheet. Moreover, the leftover debt held by the Cadwell and associated units totaling around $1 million will be swapped for a non-convertible 6% ‘Note’ maturing on December 31, 2017.
The mentioned debt conversion deals are subject to final documentation, expected to close before the end of this quarter. As per the terms of the new Series A, after conclusion of an up listing transaction to a reputed national exchange platform, all shares of Series A will convert into common stock.
Seasoned trade payables
Along with the exchange and reduction of the Cadwell debt stated above, Advanced Medical has also successfully reduced almost $500,000 of seasoned trade payables, without any additional dilution. It is expected that the changes will be recorded in the company’s 2Q 10-Q filing.
The CEO James C. Katzaroff said that the management is grateful for the continued support of the Cadwell family and linked entities. The recent initiative, as the company moves to normalize its balance sheet and capital structure, is in anticipation of preparing the company to use commercial opportunities for its Y-90 product line.
In last trading session, the stock price of Advanced Medical plunged more than 6% to close the trading session at $0.00310 on share volume of 30.28 million.