Advanced Medical Isotope Corp. (OTCMKTS:ADMD) a late stage development firm active in the manufacturing of brachytherapy devices for therapeutic use provided an update on various matters that will considerably simplify AMIC’s capital structure and enhance its balance sheet.
In last November and December, in respect with the conversion of a part of convertible debt and also exercise of warrants, Advanced Medical reported an error in the estimation of common shares that have been issued. The error resulted in additional issuances of common stock of the company. The miscalculations were said to be a result of exercises and conversions being completed below the defined par value of $0.001 per share. The transfer agent erroneously released excess freely tradable ADMD common shares due to defective legal opinions given by the respective warrant and note holders.
In order to solve the problem, Advanced Medical Isotope Corp. (OTCMKTS:ADMD) has notified applicable warrant and convertible note holders who received the excess issuance. The company proposed a set of solutions to assist compliance with the State of Delaware and other federal securities laws. Particularly, the investors may either offset remaining convertible warrants or debts, or provide to the transfer agent the additional shares issued to meet proper considerations for the common shares issued.
The company believes that the measures will have a positive influence on its balance sheet, almost reducing up to $800,000 of convertible debt and reducing a significant portion of the outstanding warrants outstanding. It will eliminate almost $11 million recorded as derivative liabilities. All the stated changes are expected to reflect in the second quarter of 10-Q filing.
In last trading session, the stock price of Advanced Medical declined more than 4% to close the trading session at $0.00460. The decline came at a share volume of 40.87 million compared to average share volume of 55.35 million.