Bioject Seeking to Restructure Its Balance Sheet
TIGARD, Ore., March 20, 2014
TIGARD, Ore., March 20, 2014 /PRNewswire/ -- Bioject Medical Technologies Inc.
(OTC Pink: BJCT), a developer and manufacturer of needle-free injection
therapy systems, today announced it is seeking to restructure its balance
sheet, in order to secure necessary operating capital.After attempts to
obtain necessary operating capital from third parties over a period of twelve
months were unsuccessful, Bioject received an advance on March 17, 2014, of
$500,000 from two of its directors, pending completion of a restructuring
plan, approved by its Board of Directors, but subject to final negotiated
agreements and shareholder and debt holder consents.
Under the planned restructuring, the $500,000 advance will be converted into
50,000 shares of a new Series I Preferred Stock with a conversion price into
common stock of $0.075 per share. In addition, existing debt holders with
notes aggregating approximately $1.0 million, will be asked to exchange the
debt into approximately 100,000 shares of Series I Preferred Stock. This
secured debt includes $260,000 of bridge promissory notes issued to the two
directors during December 2013 and January 2014. Furthermore, the Series D,
E, F and G Preferred Stock will be asked to convert into approximately 20
million shares of common stock and receive secured five year notes aggregating
between $2.0 and $2.2 million. The existing 99,455 shares of Series H
Preferred Stock and the approximately 18.9 million shares of publicly held
Common Stock, would remain in place. The Series H and Series I Preferred
Stock would rank pari passu.
The restructuring plan is expected to be finalized prior to April 30, 2014,
but is subject to final negotiated agreements and receipt of all necessary
shareholder and debt holder consents, including those referred to above. Upon
a closing of the restructuring plan as described above, on a fully diluted
basis, common share equivalents will aggregate approximately 90 million
shares, including existing employee stock options. In addition, Bioject also
plans to establish an equity incentive plan for management, employees and
directors aggregating 7 million shares.There can be no assurance that the
restructuring plan, if implemented as described above, including, but not
limited to, the additional $500,000 in operating capital, will maintain the
viability of Bioject as a going concern.
Readers and potential investors are cautioned that an investment in the
Company's securities involves an EXTREMELY high degree of risk. Such risks
include, without limitation: the risk that the Company may be unable to
continue operations and may file bankruptcy; and the risk that additional
capital may not be available on acceptable terms, if at all. The Company is
not current in the filings required under the Securities and Exchange Act of
1934 and therefore very limited information is publicly available about the
Bioject (OTC Pink: BJCT) trades on the OTC Pink tier of the OTC market.
Investors can find Real-Time quotes and market information for the Company on
For more information about Bioject, visit www.bioject.com
SOURCE Bioject Medical Technologies Inc.
Contact: Mark Logomasini, President and CEO, 503-692-8001 ext. 4121 or
Christine Farrell, Vice President of Finance, 503-692-8001 ext. 4132
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