Isolagen Receives Bridge Financing to Allow it to Seek Debtor-in-Possession Financing in Connection With a Possible Filing Under
07 May 2009 - 5:14AM
PR Newswire (US)
Isolagen Common Stock to be halted from trading on the NYSE Amex
EXTON, Pa., May 6 /PRNewswire-FirstCall/ -- Isolagen(TM), Inc.
(NYSE Amex: ILE) today announced that the Company has entered into
secured promissory notes and security agreements (the "Notes") with
eight lenders pursuant to which the Company borrowed an aggregate
of $500,417.00 in principal amount. The Notes bear interest at a
rate of 20% per annum with principal and interest on the Notes due
on the earlier of June 20, 2009 or the date that the Company files
for voluntary or involuntary bankruptcy. If the Company receives
debtor-in-possession financing in any bankruptcy proceeding, the
holders of the Notes shall have the right to exchange the face
amount of the Notes, plus any accrued but unpaid interest, into
such debtor-in-possession financing on the same terms and
conditions as the debtor-in-possession financing on a pari passu
basis and on a dollar-for-dollar basis. To secure the repayment of
the Notes, the Company granted the holders of the Notes a security
interest in and a lien on the Company's 57% equity interest in
Agera Laboratories, Inc. Viriathus Capital LLC ("Viriathus") acted
as the Company's financial advisor and placement agent with respect
to the offering of the Notes. Viriathus is also assisting the
Company in seeking potential debtor-in-possession financing in
connection with the possible filing of a voluntary petition for
reorganization relief under Chapter 11 of Title 11 of the United
States Bankruptcy Code. If the Company is successful in obtaining
commitments for such financing in sufficient amounts, it is likely
that the Company will file such a petition. The Company currently
has no legal commitments for such financing, and there is no
assurance that such financing will be available to the Company on
satisfactory terms, if at all. If the Company is unable to secure
sufficient debtor-in-possession financing, it will likely cease
operations and may file a petition for protection from creditors
under Chapter 7 of the Bankruptcy Code. The Company was advised
today that due to the foregoing disclosure effective immediately
the NYSE Amex LLC, formerly known as the American Stock Exchange
("NYSE Amex"), has halted trading in the Company's common stock.
The Company has been further advised that it will receive a notice
from the NYSE Amex that the exchange intends to delist the
Company's common stock from listing on the NYSE Amex, which
delisting will occur approximately seven days from the receipt of
such notification if the Company determines not to appeal such
decision. If the Company's common stock is delisted from the NYSE
Amex, the Company intends to apply to have its common stock quoted
on the OTC Bulletin Board as soon as practicable after the
delisting. If the Company's common stock is delisted from the NYSE
Amex, the Company does not anticipate that the trading of the
Company's common stock will recommence prior to the exchange's
delisting of the common stock and its quotation on the OTC Bulletin
Board. About Isolagen, Inc. Isolagen(TM), Inc. (NYSE Amex: ILE) is
an aesthetic and therapeutic company committed to developing and
commercializing scientific advances and innovative technologies.
The company's technology platform includes the Isolagen
Process(TM), a cell processing system for skin and tissue
rejuvenation which is currently in clinical development for a broad
range of aesthetic and therapeutic applications including wrinkles,
acne scars, burns and periodontal disease. Isolagen also
commercializes a scientifically-advanced line of skincare systems
through its majority-owned subsidiary, Agera(R) Laboratories, Inc.
For additional information, please visit http://www.isolagen.com/.
Isolagen Forward Looking Statements All statements in this news
release that are not based on historical fact are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and the provisions of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements in this press release, include, without limitation, the
Company's ability to obtain debtor-in-possession financing, the
date on which the Company's common stock will be delisted from the
NYSE Amex, if any, and the date on which the Company's common stock
is quoted on the OTC Bulletin Board if the common stock is delisted
from the NYSE Amex. While management has based any forward-looking
statements contained herein on its current expectations, the
information on which such expectations were based may change. These
forward-looking statements rely on a number of assumptions
concerning future events and are subject to a number of risks,
uncertainties, and other factors, many of which are outside of our
control, that could cause actual results to materially differ from
such statements. Such risks, uncertainties, and other factors
include, but are not necessarily limited to, those set forth under
Item 1A "Risk Factors" in the Company's Annual Report on Form 10-K
for the year ended December 31, 2008, as updated in "Item 1A. Risk
Factors" in the Company's Quarterly Reports on Form 10-Q filed
since the annual report. We operate in a highly competitive and
rapidly changing environment, thus new or unforeseen risks may
arise. Accordingly, investors should not place any reliance on
forward-looking statements as a prediction of actual results. We
disclaim any intention to, and undertake no obligation to, update
or revise any forward-looking statements. Readers are also urged to
carefully review and consider the other various disclosures in the
Company's Annual Report on Form 10-K for the year ended December
31, 2008, as well as other public filings with the SEC since such
date. DATASOURCE: Isolagen, Inc. CONTACT: Mike Beyer,
+1-773-463-4211, Web Site: http://www.isolagen.com/
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