NXT Nutritionals Holdings, Inc. Announces Restructuring of Long-Term Debt
15 December 2011 - 12:00AM
Marketwired
NXT Nutritionals Holdings, Inc. ("Company") (OTCBB: NXTH),
developer and marketer of SUSTA™ Natural Sweetener, the great
tasting, all-natural, healthy sweetener, and Healthy Dairy® non-fat
yogurt smoothies that are sweetened with SUSTA, announced today
that effective on November 4, 2011, the Company restructured its
long-term debt in connection with a recent $1,000,0000 capital
investment by NXT Investment Partners, LLC ("NXT Partners")
previously announced on November 28, 2011.
More than 90% of the holders of notes issued to certain
investors in a financing that closed in November 20, 2010 (the
"2010 Notes") agreed to amend the terms of the Notes, which
resulted in all of the 2010 Notes being amended. The amended terms
of the 2010 Notes include, among other things, the extension of the
maturity date to November 21, 2015, a waiver of any obligation for
the Company to make payments until the new maturity date, reduces
the conversion price of the 2010 Notes and the exercise price of
the warrants to twenty-five ($0.25) cents per share, a waiver of
any further anti-dilution rights, and the subordination of the
security interests of the holders of the 2010 Notes to that of the
NXT Partners.
In addition, the holders of over 70% of the outstanding amounts
due under the convertible debentures entered into by the Company in
2009 (the "2009 Debentures") have signed an agreement amending the
terms of their 2009 Debentures. The agreement only amends the 2009
Debentures of those holders who signed the agreement. Among other
things, the maturity dates of those 2009 Debentures have been
extended to November 21, 2015, the holders waived any future
anti-dilution rights and the conversion price of the 2009
Debentures and exercise price of the warrants have been reduced to
twenty-five ($0.25) cents per share.
The Company's CEO Mike McCarthy said: "The debt restructuring is
a positive development for the Company. We will continue to
aggressively pursue the growth of the Company, with our primary
focus on delivering our high quality products to the military. The
Company's Healthy Dairy® yogurt smoothies are approved on the U.S.
Navy's Standard Daily Core Menu and are currently being sold to the
Navy and to the United States Military Academy at Annapolis and the
United States Air Force Academy."
About NXT Nutritionals Holdings, Inc.
Headquartered in Springfield, MA., NXT Nutritionals Holdings,
Inc., through its wholly owned subsidiary NXT Nutritionals, Inc.,
is a developer and marketer of a proprietary, patent-pending,
all-natural, healthy sweetener sold under the brand name SUSTA™ and
other food and beverage products. SUSTA™ Natural Sweetener, sold as
a stand-alone product and the common ingredient for all of the
Company's products, is an all-natural, healthy sweetener that has
minimal calories and low glycemic index. NXT Nutritionals has also
developed a line of SUSTA™-enhanced non-fat reduced-calorie yogurt
smoothies that are marketed as Healthy Dairy® Yogurt Smoothies. For
additional information, please visit NXT Nutritionals' corporate
website: www.nxtnutritionals.com
Forward-Looking Statements
The statements in the press release that relate to the Company's
expectations with regard to the future impact on the Company's
results from new products in development are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements are subject to risks and
uncertainties. Words such as "expects," "intends," "plans," "may,"
"could," "should," "anticipates," "likely," "believes" and words of
similar import also identify forward-looking statements.
Forward-looking statements are based on current facts and analyses
and other information that are based on forecasts of future
results, estimates of amounts not yet determined and assumptions of
management. Readers are urged not to place undue reliance on the
forward-looking statements, which speak only as of the date of this
release. We assume no obligation to update any forward-looking
statements in order to reflect any event or circumstance that may
arise after the date of this release. Additional information on
risks and other factors that may affect the business and financial
results of NXT Nutritionals Holdings, Inc. can be found in the
filings of NXT Nutritionals Holdings, Inc. with the U.S. Securities
and Exchange Commission.
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Contact: NXT Nutritionals Holdings, Inc. Michael McCarthy
President and CEO 1-800-535-4315 moreinfo@nxtnutritionals.com
NXT Nutritionals (CE) (USOTC:NXTH)
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