IRVINE, Calif., Feb. 19, 2015 /PRNewswire/ -- AtheroNova
Inc. (OTCQB: AHRO) today announced that after its filing of a
Current Report on Form 8-K disclosing that on February 12, 2015 it received a notice of
acceleration from Europa International, Inc., the holder of a 2.5%
Senior Secured Convertible Note issued by the Company in the
principal amount of $427,500, the
Company received additional notices of acceleration from certain
holders of outstanding 2.5% Senior Secured Convertible Notes, 6%
Senior Secured Convertible Notes and 8% Senior Secured Convertible
Notes.
As previously disclosed, the event of default under Europa's
2.5% note constitutes an event of default under each of the
Company's other outstanding secured notes. The Company's
secured notes do not require notice to accelerate the debt upon an
event of default, and the holders of the secured notes may
immediately enforce any and all of their rights and remedies under
the secured notes and under applicable law. Consequently,
holders of other outstanding secured notes issued by the Company
may seek to enforce their rights and remedies under the secured
notes and under applicable law without notice to the Company.
The outstanding principal amount under the Company's 2.5% notes
is $1,181,167. The acceleration
of the indebtedness under the 2.5% notes entitles the holder to
receive 120% of the outstanding principal plus accrued and unpaid
interest and other costs and expenses arising thereunder. If
all indebtedness under the 2.5% notes is accelerated, the Company
is required to repay to the holders thereof $1,417,400 plus accrued and unpaid interest and
other costs and expenses arising thereunder.
The outstanding principal amount under the Company's 6% notes is
$1,866,500. The acceleration of
the indebtedness under the 6% notes entitles the holder to receive
at least 120% of the outstanding principal plus accrued and unpaid
interest and other costs and expenses arising thereunder. If
all indebtedness under the 6% notes is accelerated, the Company is
required to repay to the holders thereof at least $2,239,800 plus accrued and unpaid interest and
other costs and expenses arising thereunder.
The outstanding principal amount under the Company's 8% notes is
$500,000. The acceleration of
the indebtedness under the 8% notes entitles the holder to receive
at least 120% of the outstanding principal plus accrued and unpaid
interest and other costs and expenses arising thereunder.
Assuming that all indebtedness under the 8% notes is accelerated,
the Company is required to repay to the holders thereof at least
$600,000 plus accrued and unpaid
interest and other costs and expenses arising thereunder.
In summary, if all indebtedness under the Company's outstanding
secured notes is accelerated, the Company is required to pay to the
holders thereof at least $4,257,200
in principal, plus accrued and unpaid interest and other cost and
expenses. As of February 19,
2015, the Company's cash balance was approximately
$1 million.
In light of the fact that the Company's outstanding debt exceeds
its available cash, and given that certain holders of secured notes
have accelerated the indebtedness under their secured notes and
other holders of secured notes may accelerate their indebtedness
and exercise available remedies without notice to the Company, the
Company is evaluating all available paths forward.
About AtheroNova
AtheroNova Inc. is a clinical-stage
biopharmaceutical company focused on the discovery, development,
commercialization and licensing of novel prescription compounds and
products. For more information, please visit
www.AtheroNova.com.
Forward-Looking Statements
This news release includes
"forward-looking statements". These statements are based upon the
current beliefs and expectations of AtheroNova's management and are
subject to significant risks and uncertainties. If underlying
assumptions prove inaccurate or risks or uncertainties materialize,
actual results may differ materially from those set forth in the
forward-looking statements.
Risks and uncertainties include but are not limited to, general
industry conditions and competition; significant fluctuations in
expenses associated with clinical trials, failure to secure
additional financing, the inability to complete regulatory filings
with the FDA, general economic factors, including interest rate and
currency exchange rate fluctuations; the impact of pharmaceutical
industry regulation and health care legislation in the United States and internationally; global
trends toward health care cost containment; technological advances,
new products and patents attained by competitors; challenges
inherent in new product development, including obtaining regulatory
approval; AtheroNova's ability to accurately predict future market
conditions; manufacturing difficulties or delays; financial
instability of international economies and sovereign risk;
dependence on the effectiveness of AtheroNova's patents and other
protections for innovative products; and the exposure to
litigation, including patent litigation, and/or regulatory
actions. Examples of forward-looking statements in this
release include statements related to the acceleration of the
Company's outstanding debt.
AtheroNova undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events or otherwise. Additional factors that could cause
results to differ materially from those described in the
forward-looking statements can be found in AtheroNova's 2013 Annual
Report on Form 10-K and the company's other filings with the
Securities and Exchange Commission (SEC) available at the SEC's
Internet site (www.sec.gov).
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SOURCE AtheroNova Inc.