Media Sciences International has announced an agreement with financer Microcapital to modify convertible notes and repurchase warrants.
In exchange for 400,000 shares of MSI’s common stock, Microcapital will be removing the convertible feature of the notes, and all related warrants will be sold back to MSI and subsequently cancelled.
MSI President and CEO Michael Levin said: “We believe the modification of the notes and repurchase of the warrants enhances our capital structure by eliminating the significant dilution that could have resulted from the nearly 2.3 million shares of the Company’s stock that were potentially issuable under the original agreements. This transaction also provides us greater flexibility to finance the future growth of Media Sciences.”
The stock agreement comes after MSI announced they were due to be delisted from NASDAQ earlier in the month after falling below the minimum $1.00 share price.