MRI contrast developer Epix Pharmaceuticals of Lexington, MA, may be forced to seek bankruptcy protection if it cannot restructure its financial obligations.
To avoid bankruptcy protection, Epix is offering to exchange convertible senior notes due 2024 for shares of common stock and a cash payment. Under the terms of the proposal, Epix will issue in exchange for each $1,000 in principal amount of notes a cash payment of $180, 339 shares of common stock, and one contingent value right (CVR). The offer will expire on May 4.
If all notes are tendered, noteholders would receive $18 million and a total of 33.9 million common shares, representing approximately 45% of Epix's outstanding common stock.
Epix's restructuring strategy also calls for the firm to use proceeds from the recent sale of U.S., Canadian, and Australian marketing rights for MR angiography contrast agent MS-325 to Lantheus Medical Imaging of North Billerica, MA.
Related Reading
Lantheus buys Epix's MS-325 rights, April 7, 2009
Epix gets 'going concern' notice, March 26, 2009
Epix posts mixed Q4, cuts staff 50%, March 12, 2009
Epix taps new CEO, March 5, 2009
Epix executive resigns, February 27, 2009
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