AtheroNova Receives Notice of Debt Acceleration
IRVINE, Calif., Feb. 13, 2015 /PRNewswire/ -- AtheroNova Inc. (OTCQB: AHRO) today announced that it filed a Current Report on Form 8-K disclosing that on February 12, 2015 it received a notice of acceleration from Europa International, Inc., the holder of a 2.5% Senior Secured Convertible Note ("2.5% Note") issued by the Company in the principal amount of $427,500. The 2.5% Note was due and payable on November 12, 2014 and the holder was entitled to accelerate outstanding amounts under the 2.5% Note on November 26, 2014. While the Company attempted to negotiate an extension of the maturity date of the 2.5% Note, those negotiations were ultimately unsuccessful. The acceleration of the indebtedness under the 2.5% Note entitles the holder to receive 120% of the outstanding principal plus accrued and unpaid interest and other costs and expenses arising thereunder. The 2.5% Note also began to accrue interest at 12% per annum from November 26, 2014.
The event of default under the 2.5% Note constitutes an event of default under each of the Company's other outstanding 2.5% Senior Secured Convertible Notes with a principal balance outstanding of $753,667, of which $666,667 is also held by Europa, 6% Senior Secured Convertible Notes, with a principal balance outstanding of $1,866,500, and 8% Senior Secured Convertible Notes, with a principal balance outstanding of $500,000. As a consequence of such event of default, interest under the 6% Notes and the 8% Notes will accrue at 24% per annum and each holder of a 6% Note or an 8% Note may elect to accelerate the indebtedness under such note. Acceleration of the indebtedness under those notes will entitle the holders thereof to receive the greater of (1) 120% of the outstanding principal plus accrued and unpaid interest and (2) the product of the highest closing price for the 5 trading days immediately preceding acceleration of such notes multiplied by a fraction of the outstanding principal over the conversion price as of the date of determination, and other costs and expenses arising thereunder. On February 12, 2015, Europa elected to accelerate the indebtedness under the other 2.5% Senior Secured Convertible Notes, along with the 6% Notes and 8% Notes, held by Europa.
About AtheroNova
AtheroNova Inc. is a clinical-stage biopharmaceutical company focused on the discovery, development, commercialization and licensing of novel prescription compounds and products. For more information, please visit www.AtheroNova.com.
Forward-Looking Statements
This news release includes "forward-looking statements". These statements are based upon the current beliefs and expectations of AtheroNova's management and are subject to significant risks and uncertainties. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements.
Risks and uncertainties include but are not limited to, general industry conditions and competition; significant fluctuations in expenses associated with clinical trials, failure to secure additional financing, the inability to complete regulatory filings with the FDA, general economic factors, including interest rate and currency exchange rate fluctuations; the impact of pharmaceutical industry regulation and health care legislation in the United States and internationally; global trends toward health care cost containment; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; AtheroNova's ability to accurately predict future market conditions; manufacturing difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of AtheroNova's patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and/or regulatory actions. Examples of forward-looking statements in this release include statements regarding the potential remedies available to debt holders.
AtheroNova undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in AtheroNova's 2013 Annual Report on Form 10-K and the company's other filings with the Securities and Exchange Commission (SEC) available at the SEC's Internet site (www.sec.gov).
SOURCE AtheroNova Inc.
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