Medisafe 1 Technologies Corp. shareholders received a ‘no-dilution’ gift Tuesday as the company announced early liquidation of a $45,000 promissory note, along with interest due. The note, which would have come due in July, bore 8% annual interest and could have been converted by the lender at any time, in whole or in part, into common stock.
The enterprise is a developer of patented technologies that physically prevent unauthorized administration of prescription medications.
Jerusalem-based Medisafe said in its announcement that the note had been incurred last October to “fund development of Medisafe 1′s patented life-saving technology and to assist in ongoing business development.” As a result of pre-payment, the non-affiliated third party lender has released Medisafe 1 Technologies from its obligation.
“Medisafe 1 pre-paid the promissory note to prevent the note from being converted into equity,” explained CEO Jacob Elhadad. “Pre-payment of the note prevented the dilution of our common stock.”
The firm’s prepayment of the note was made May 9, according to company sources. Until then, the lender had the option to convert the debt to common shares at a price equal to just 58% of the average of the lowest three trading prices for the 10-day period preceding exercise of the conversion option. Medisafe’s Nasdaq charts show that price would have been $0.0483 (as of EOD May 9). This would have diluted Medisafe’s stock by about 931,000 shares, had the option been fully exercised, against the backdrop of a float of 21.39 million shares and of 56.9 million shares outstanding. Medisafe stock closed Tuesday at $0.075.
Medisafe’s technology is aimed at effectively preventing unauthorized or accidental administration of a drug or medicinal substance by hypodermic needle. The needle-syringe assembly has a locking mechanism that is intended to ensure the substance cannot be released from the hypodermic needle without positive pre-matching between the substance and its intended patient. Pre-matching is accomplished via a computerized system.
In other company news, Medisafe announced last Friday that it was preparing to submit three new patent applications for medical safety devices. One is an anti-fraud and anti-theft device that prevents unauthorized medical and drug related products from leaving inventory storage. A second is a physical locking device for syringes and capsules designed differently from the company‘s current offerings, and a third is a physical locking device that measures the release of prescribed dosages to prevent administration of too much medication.
“The filing of these additional patents demonstrates Medisafe 1 Technologies’ commitment to research and development, and to finding the best methods to prevent the unauthorized administration of prescription medications,” commented Elhadad, adding, “We look forward to advancing the products filed from development to commercial phase.”
More information on the Company can be found at www.medisafe1.com