Medi-Hut Co., Inc. (MHUT) Announces The Closing Of A Private Placement Of Convertible Debentures
10/19/2005 5:09:44 PM
SPRING LAKE, N.J.--(BUSINESS WIRE)--May 31, 2005--Medi-Hut Co., Inc. ("Medi-Hut" or the "Company") announced today that it closed on a private placement of convertible debentures (the "Debentures"). The gross proceeds received in connection with this private placement were $300,000, which are to be used for working capital purposes, including funding the Company's current litigation against Syntho Pharmaceuticals, Inc. and its president, Muhammed Malik, and Breckenridge Pharmaceutical Inc., relating to the Company's exclusive right to distribute the hormone replacement therapy drug, Syntest as well as to fund the Company's ongoing litigation against its former independent auditors, Rosenberg, Rich, Baker, Berman & Company. The Debentures have a 5 year term maturing on April 30, 2007, and bear interest at a rate of 8% per annum. Up to 50% of the aggregate principal amount of the Debentures are immediately convertible into shares of the Company's common stock at the option of the holders at a conversion price of $0.10 per share. The remaining 50% of the aggregate principal amount of the Debentures are convertible at the option of the holders at any time after May 1, 2006 at a conversion price of $0.20 per share.