M Pharmaceutical Arranges Placement to Settle Debt

M Pharmaceutical Inc. (CSE:MQ) announced has reached agreement with its creditors to settle $743,266.36 of payables in exchange for convertible debenture notes.
As quoted in the press release:

The company debt will be settled by issuing convertible debentures, convertible into common stock at an exercise price of 10 cents. The term of the notes is 36 months at 10-per-cent annual simple interest. The interest shall be paid up front, through the issuance of interest units. Each interest unit consists of one share of the company’s common stock (at a deemed price of five cents per unit) and one warrant with an exercise price of 10 cents and a term of two years. Common stock issued under this placement is subject to a standard four-month lockup period as required by the Canadian Securities Exchange.

M Pharmaceutical CEO Matthew B. Lehman stated:

I am pleased we have reached this settlement with the company’s creditors. This is a significant milestone that restructures the fundamentals of our financial situation. It allows us to develop our Trimeo, Trimtec and eMosquito technologies with a stronger balance sheet.

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