Cygnus
This article was originally published in The Gray Sheet
Executive Summary
Proceeds of $18 mil. are raised through two offerings, including the "issuance of 8.5% fixed-rate convertible debentures for $14 mil., due June 29, 2004, with the right to sell an additional $6 mil. of debentures within the next year," and an additional $4 mil. from an equity line financing. Funds from the convertible debt, which is being managed by Palladin Group LP, will be used to redeem $12.5 mil. in existing floating rate convertible debt, which became convertible on July 1. "By establishing access to more capital through additional debentures and the equity line financing we should be able to fund certain activities in anticipation of the launch of the GlucoWatch monitor," Craig Carlson, senior VP-finance and chief financial officer comments in a July 1 release