Implant Sciences Corporation (OTCQB:IMSC), a leading manufacturer of explosives trace detection (ETD) solutions for Department of Homeland Security (DHS) applications, today announced the extension of its secured credit agreements with DMRJ Group, LLC.
Implant Sciences amended its credit arrangements with DMRJ Group LLC and Montsant Partners LLC to extend the maturity date of its obligations that were otherwise due on March 31, 2016 to October 31, 2016. The company had previously attempted to extend the obligations under the Omnibus Fourteenth Amendment to Credit Agreement and Sixteenth Amendment to Note and Warrant Purchase Agreement, however, despite best efforts by the company and the investor, certain effectiveness conditions were not achieved and the amendment was never deemed effective. The Extension provides for the conversion price for its September 2012 convertible promissory note was reduced from $1.09 to $.19 per share for up to $7M of obligations and the remaining conversion rights under such note and the February 2013 convertible promissory note were waived.
"We are thankful to our lenders for their ongoing support of the company as we continue to execute on our strategy within the ETD business," said Bill McGann, CEO of Implant Sciences. "We believe that additional time to develop the fundamentals of the ETD business and to explore and execute on our strategic alternatives will pay dividends for the shareholders of the company."
Late last year the company announced that it had begun a process to evaluate strategic opportunities in response to its rapid growth and changing market conditions. The company believes that securing the debt extension is a vital part of any process to explore strategic alternatives in the ETD business.
Additionally, Implant Sciences is currently exploring the purchase of another unique business with applications in the defense and homeland security spaces. As an accommodation to allow Implant Sciences to pursue such an acquisition, the company has issued a conditional warrant to DMRJ to purchase up to 50,657,894 shares of the company's common stock at an exercise price of no lower than $.19 per share for a period of 5 years. The warrant will be cancelled if the acquisition is not completed.
The maturity of the BAM note has been extended as well from June 29, 2016 to October 30, 2016, one day before the maturity of the DMRJ and Montsant notes. Detailed information on the extensions will be made available by the company in a Current Report on Form 8-K, to be filed in accordance with SEC guidelines.
About Implant Sciences
Implant Sciences is a leader in developing and manufacturing advanced detection capabilities to counter and eliminate the ever-evolving threats from explosives and drugs. The Company's team of dedicated trace detection experts has developed proprietary technologies used in its commercial products, thousands of which have been sold across more than 70 countries worldwide. The Company's ETDs have received approvals and certifications from several international regulatory agencies including the TSA in the U.S., ECAC in Europe, CAAC and the Ministry of Public Safety in China, Russia FSB, STAC in France, and the German Ministry of the Interior. It has also received the 2015 GSN Airport/Seaport/Border Security Award for "Best Security Checkpoint". For further details on the Company and its products, please visit the Company's website atwww.implantsciences.com.
