RANCHO CORDOVA, CA - ThermoGenesis Holdings (OTC:THMO), Inc. has reported the conversion of a portion of its debt into equity, a move that has resulted in the issuance of new shares, according to a recent 8-K filing with the Securities and Exchange Commission.
On Monday, the company received a conversion notice from Boyalife Group, Inc., its investor, to convert $3 million of the outstanding principal of a convertible promissory note into common stock.
The conversion price was set at $0.38 per share, leading to the issuance of 7,894,737 shares of ThermoGenesis's common stock. Following this transaction, the remaining principal and accrued interest on the note amount to approximately $3,441,000. The company's total outstanding shares have now increased to 15,847,517.
ThermoGenesis, known for its laboratory apparatus and furniture, operates under the industrial classification code 3821. It is incorporated in Delaware and has its principal executive offices in Rancho Cordova, California. The company's common stock is listed on the Nasdaq Capital Market under the ticker symbol THMO.
The convertible promissory note was initially issued to Boyalife on April 16, 2018, and has since been amended multiple times, with the most recent amendment dated January 5, 2024. Boyalife's decision to convert a portion of the note into shares reflects an ongoing financial relationship between the two entities.
This financial maneuver is a strategic step for ThermoGenesis as it adjusts its capital structure. The conversion of debt to equity can often be used to strengthen a company's balance sheet and provide additional working capital for operations or investment. The information disclosed in the 8-K filing provides investors with insight into ThermoGenesis's financial dealings and its relationship with Boyalife Group, Inc.
The 8-K filing, as a current report, is a regular requirement for publicly traded companies to disclose significant events that shareholders should know about. It serves as a source of the latest corporate information for investors and market analysts.
ThermoGenesis has not provided any additional commentary on the implications of this stock issuance or the potential impact on its financial position. The details provided in this article are based solely on the factual statements from the company's SEC filing.
In other recent news, ThermoGenesis Holdings has entered into a three-year Manufacture and Supply Agreement with CBR Systems, Inc. This agreement, announced in recent developments, involves ThermoGenesis supplying CBR with its proprietary AutoXpress® System (AXP) for cord blood processing and associated disposables.
The partnership, which is set to renew annually after the initial term, can be terminated by either party with a six-month notice.
In addition, the companies have revised their Technology License and Escrow Agreement, eliminating the requirement for ThermoGenesis to maintain a minimum cash balance of $1 million. This amendment also removes the obligation for ThermoGenesis to hold a safety stock of products for CBR.
Another significant change is the reduction of the lead time for AXP product deliveries to CBR from 120 to 90 days. This adjustment is designed to streamline the supply process and potentially enhance operational efficiency between ThermoGenesis and CBR.
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