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In a release, the company noted that it offered to exchange all of the $68.3 million aggregate principal amount of its outstanding 3.125 percent Convertible Senior Notes due in 2011 at a purchase price for each $1,000 principal amount of (i) $500, plus accrued interest, (ii) $140 worth of common stock equal to approximately 221 shares of common stock, and (iii) $310 of new 3.125 percent Convertible Senior Notes due in May 2013. Upon settlement of the exchange offer, approximately $1 million of the original 3.125 percent Convertible Senior Notes due in 2011 remain outstanding and $20.8 million of new 3.125 percent Convertible Senior Notes 2013 notes are expected to be issued. In connection with the exchange, participants in the exchange are expected to be issued approximately 13.8 million shares of common stock, $33.5 million in cash and $0.3 million in accrued interest. The Company expects to settle the exchange offer as soon as practicable.
Upon settlement of the exchange offer, the Company's cash balance is expected to be approximately $36 million and 109.6 million shares of stock are expected to be outstanding.
Under the terms of a settlement agreement entered into on May 10, Tang Capital Partners agreed to withdraw the creditor derivative lawsuit it filed against the Company on May 5, following consummation of the exchange offer.
As previously announced, the Company has implemented a substantial restructuring plan and continues to explore strategic alternatives, including merger with or acquisition by another company, additional restructuring, allocation of its remaining resources toward other biopharmaceutical product areas, which may include the acquisition or licensing of other product candidates, and liquidation of the Company. The Company engaged Lazard Freres & Co. in connection with the evaluation of strategic alternatives.
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