Patient Safety Technologies, Inc. (OTCBB:PSTX) announced today that on August 10, 2007 it entered into definitive agreements restructuring all of the Company’s debt held by Ault Glazer Capital Partners, LLC (the “Fund”). Prior to the restructuring, the Company owed the Fund approximately $2.95 million in principal and accrued interest, which was advanced under the terms of three separate agreements: (1) a Revolving Credit Facility of $420,000, (2) a Secured Promissory Note of $780,000, and (3) a Secured Promissory Note of $1.75 million.
The Revolving Credit Facility, which was in default, was converted into 337,439 shares of the Company’s common stock at a conversion price of $1.25 per share. The other two Secured Promissory Notes, one of which was in default, were combined into a single Convertible Secured Promissory Note in the principal amount of $2.53 million with an effective date of June 1, 2007. The promissory note bears interest at the rate of 7% per annum and is due on the earlier of December 31, 2010, or the occurrence of an event of default. In the event that the average closing price of the Company’s common stock is in excess of $5.00 per share for thirty (30) consecutive trading days, the Company will have the right to redeem the promissory note in shares or in cash.
