TORONTO, ONTARIO--(Marketwired - Aug. 15, 2014) - BIOSENTA INC. ("Biosenta" or the "Company") (CSE:ZRO), is pleased to announce that it has successfully completed an over-allotment of the issuance of Convertible Debentures announced on June 26, 2014. In that announcement, the Board had approved the sale of $1 million of debentures to fund working capital and sales expenses. Due to high demand, the Board has now approved an over-allotment of an additional $465,000.
The terms of the debentures include a term of 2 years, interest payable quarterly at 6% per annum, and an automatic conversion to equity at 40 cents per common share at any time after the share price has traded at 50 cents or higher for more than 30 days. Upon conversion to common shares, for each share converted, a full warrant exercisable at $1.00 and having a term of 2 years from the date of conversion will also be issued. The debentures have maturity dates ranging from June 23, 2016 through August 6, 2016.
Proceeds of the debenture are being used to fund working capital, accounts receivables, and ongoing market development expenses related to the launch in the US of ZeroMold Plus™. The funds have also been used to repay $350,000 of principal of the $550,000 owed to Bassett Financial Corporation.
The Company also announces that it has recently received its 75-day letter from the EPA that identifies minor deficiencies in our submission allowing ZeroMold-PLUS to be approved for sale in the United States. This is a positive result because the deficiencies identified all relate to test results that had not been completed at the time of submission in January 2014 but have since been successfully completed. The EPA does not allow interim submission of these test results and the Company's only alternative would have been to defer its original submission until these tests had been completed which was not until late June of this year.
While the final approval could now be deferred by the EPA to as late as the end of 2014, the EPA has stated that they do not always require that much additional time. Accordingly, Company management intends to put forth every possible effort to try to achieve a complete EPA approval as close to the September 30, 2014 date as was originally anticipated in the milestones identified in the Company's March 26, 2014 Press Release. Regardless of when the final approval actually occurs, the Company is now in a much better position to organize its US sales team and strategy in advance of the final approval date than it would have been had it waited until late June to make its original submission.
"We are pleased that Biosenta has made great progress on both the financing and by substantially reducing the risk and variability of timing of our US EPA approval," said Bassett Financial CEO, Matthew Bassett. "By having a more definitive timeline on our EPA approval date, the company is able to plan for a product launch date that will be almost immediately following the issuance of the EPA approval. As each of these milestones is achieved, the company continues to gain strength and momentum toward greater sales."
About Biosenta Inc.
Biosenta Inc.'s line of retail anti-microbial products will effectively kill mold, bacteria and fungi on contact and prevent re-growth. These products address the demand created by the mounting health and environmental concerns. Mold can affect the immune system, nervous system, liver, kidneys, blood and can cause brain damage.
On behalf of the Board of Directors of Biosenta Inc.
Chris Bilz, CEO & President
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