Advanced Medical Isotope Corp. (OTCMKTS:ADMD) shed most of the gains Friday that it made during the earlier sessions. The company had amassed the attention from the shareholders last week after releasing an important update on its capital restructuring plan. The company was successful in getting into the limelight as the press release was its first communication in last couple of months.
Conversion of debt
The company informed its investors that it had reached an agreement with its former and primary lender, Carlton Cadwell as well as his related affiliates. The agreement made was in connection to the conversion of long-term debt worth $5 million into preferred stock.
Advanced Medical Isotope Corp. (OTCMKTS:ADMD) said in the press note that other lenders have also agreed to settle their debt through the same conversion scheme. As a result of the agreement, the company decided to convert Series A Convertible Preferred Stock at a price of $0.15 per share. The transaction will appear on the equity side of the company’s balance sheet.
The press note also threw light on other developments taking place with the company. Advanced Medical Isotope Corp. (OTCMKTS:ADMD) pointed that it has also successfully exchanged the rest of the debt of Cadwell associates with the new convertible note, which is set to mature on December 31, 2017. The amount of such converted debt stood at $1 million. The company informed its stakeholders that the final agreement pertaining to conversion of debt into stock will be completed during the current quarter.
Other than this, Advanced Medical Isotope Corp. (OTCMKTS:ADMD) gave an account of repayment of $500,000 of trade payables without the need for additional dilution. The company also mentioned about its efforts to reclassify its Y-90 RadioGel device under Class II. The stock of the company fell by over 6% to $0.00310 during the previous trade as 48.73 million shares traded on the day.