ASX/Media RELEASE 4 April 2007
pSivida and Sandell agree to redeem entire
Convertible Loan
pSivida has issued Redemption Notice for the Convertible Loan
Boston, MA. and Perth, Australia – pSivida Limited (NASDAQ:PSDV, ASX:PSD,
Xetra:PSI) today announced that it has entered into an agreement with its principal
institutional lender, Sandell Asset Management Corp. (Sandell) whereby Sandell has
agreed to close the December 29th, 2006 amendment to the Convertible Loan which was
announced on January 2nd, 2007 and, in conjunction with the closing, pSivida has issued
an irrevocable redemption notice for the entire balance of the convertible loan. Sandell
has extended the forbearance agreement until April 7, 2007 to facilitate the prompt
closing of that agreement.
pSivida will issue warrants to Sandell to acquire 4,000,000 American Depository Shares
(ADSs) with an exercise price of US$2.00 per ADS, as previously agreed. pSivida has
issued a redemption notice for the entire convertible loan pursuant to which the
outstanding balance of the loan will be repaid in early June 2007. In connection with the
redemption, as required by the terms of the loan, pSivida will issue warrants to acquire
2,341,347 ADSs. pSivida will also issue to Sandell warrants to acquire 4,000,000 ADSs
with an exercise price of US$1.57 per ADS and warrants to acquire 1,000,000 ADSs with
an exercise price of US$1.95 per ADS. All issued warrants will have an exercise term of 5
years.
“This agreement enables pSivida to move forward with a much simpler capital structure
facilitating the company’s future development” said Dr. Paul Ashton, Managing Director,
pSivida Limited.
THIS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION
TO BUY ANY SECURITIES.
-ENDS
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