NEWTOWN, Pa.--(BUSINESS WIRE)--Dec. 15, 2005--CollaGenex Pharmaceuticals, Inc. (NASDAQ:CGPI) today announced that it had reached agreement with each of the holders of its Series D Cumulative Convertible Preferred Stock (the “Preferred Stockholders”), including OCM Principal Opportunities Fund, L.P. (“OCM”), to amend the terms of such Preferred Stock. Through an exchange of their shares of Series D Preferred Stock for shares of Series D-1 Preferred Stock, the Preferred Stockholders agreed permanently to waive their right to approve research and development expenditures in excess of $7 million annually in exchange for a reduction in the conversion price of the Preferred Stock from $9.89 per share to $8.50 per share. The Preferred Stockholders also agreed to reduce the mandatory conversion price from $19.78 per share to $17.00 per share, and to reduce the number of consecutive trading days during which the closing price of the Company’s common stock exceeds $17.00 from 40 days to 30 days before the Company can require conversion of the Series D Preferred Stock into common stock. The Series D Preferred Stock was issued in 1999 and has a liquidation value, excluding accrued dividends, of $20 million.
