On May 28, 2020 IntelGenx Technologies Corp. (TSX-V:IGX) (OTCQB:IGXT) ("IntelGenx" or the "Corporation") reported that it intends to issue shares of common stock ("Common Shares") of the Corporation in payment of the outstanding $7,577,000 aggregate principal amount of the Corporation’s 8.00% convertible unsecured subordinated debentures due June 30, 2020 (the "Debentures") (Press release, IntelGenx, MAY 28, 2020, View Source [SID1234558607]).
Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:
Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing
Schedule Your 30 min Free Demo!
Under the terms of the trust indenture governing the Debentures (the "Indenture"), the Corporation has the option to satisfy its obligation to repay all or any portion of the principal amount of the Debentures outstanding by issuing and delivering Common Shares at a deemed price of 95% of the current market price (as defined in the Indenture) at the maturity date, subject to customary conditions set forth in the Indenture. The issuance of the Common Shares in repayment of the principal of the Debentures is subject to the acceptance by the TSX Venture Exchange (the "TSX-V"). The Common Shares issued in payment of interest on the Debentures will be issued pursuant to exemptions from the prospectus requirements of applicable securities laws.
The Corporation also announced today that a meeting of the holders of the Debentures (the "Meeting") will be held on Thursday, June 25, 2020. Debentureholders as of the record date of May 28, 2020 will receive a notice and information circular in respect of the Meeting and information on how to attend the Meeting will be provided on the Corporation’s website in due course. As previously announced, the Corporation is proposing to amend the terms of the Debentures to extend the maturity date from June 30, 2020 to June 30, 2022 and reduce the conversion price from $1.35 to $0.50 (together, the "Proposed Amendments"). The Proposed Amendments, which have been conditionally approved by the TSX-V, remain subject to approval by the holders of not less than 66 2/3% of the outstanding principal amount of the Debentures represented at the Meeting. If debentureholder approval is obtained, the Corporation intends to proceed with the Proposed Amendments, including the extension of the maturity date, such that the intended repayment of principal in Common Shares on June 30, 2020 indicated above would no longer be required and would not occur.
The Debentures are listed on the TSX-V under the symbol "IGX.DB".