MARIETTA, Ga., April 5 MiMedx Group, Inc. (OTC Bulletin Board: MDXG) announced today that it has elected to convert its 3.00% Convertible Senior Secured Notes into Common Stock effective March 31, 2010.
In April 2009, the Company issued $3.472 million principal amount of its 3.00% Senior Secured Convertible Notes, with a Maturity Date in April 2012. The terms of the Notes give the Company the right to convert the Notes into Common Stock in the event that the closing price of MiMedx Group Common Stock equals or exceeds $1.50 for not less than twenty (20) consecutive trading days preceding the Maturity Date. The terms further provide that effective immediately upon the close of trading on such twentieth (20th) consecutive trading day, the outstanding principal balance of the Note shall, at the election of the Company, convert into a specified number of shares of Common Stock.
In accordance with the terms, the Notes are converting at the conversion rate of two (2) shares per $1.00 principal amount. A total of 6,784,000 shares of MiMedx Group Common Stock were issued in the conversion.
Parker H. "Pete" Petit, Chairman and Chief Executive Officer, stated, "We are pleased that our performance has enabled us to implement this conversion. With this action, we have reduced our indebtedness by $3.437 million and are debt free. In addition, we have relieved the Company of any further interest obligations related to the Notes, as well as significantly strengthened our balance sheet by increasing our net worth."
The Company also announced that its results for the first quarter, ended March 31, 2010, will be released before the opening of the market on Tuesday, April 27, 2010. MiMedx group will host a live broadcast of its first quarter conference call on April 27, 2010, beginning at 10:30 a.m. Eastern Time. A listen-only simulcast of the MiMedx Group conference call will be available online at the Company's website at www.mimedx.com or at www.earnings.com. A 30-day online replay will be available approximately one hour following the conclusion of the live broadcast. The replay can also be found on the Company's website at www.mimedx.com or at www.earnings.com
About MiMedx Group, Inc.
MiMedx Group, Inc. is an integrated developer, manufacturer and marketer of patent protected biomaterial-based products and is in the process of transitioning from a development-focused concern to an operating company focused on sales growth and profitability. The Company's assets include intellectual property protecting its CollaFix(TM) collagen-based technology for augmentation of soft and connective tissue diseases and trauma and intellectual property protecting HydroFix(TM), a novel durable hydrogel technology. The Company has received FDA clearance for HydroFix(TM) Vaso Shield, which is indicated for use as a cover for vessels following anterior spinal surgery, and European clearance (CE Mark) for its HydroFix(TM) Spine Shield, which is indicated for use as an adhesion barrier for anterior spinal surgery. More information about MiMedx Group can be found at www.mimedx.com
SOURCE MiMedx Group, Inc.