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Vuzix Corp. announced Monday it has reached agreements that would lead to a $4.2 million debt restructuring.
The Henrietta seller of video eyewear said it has entered into an agreement with holders of outstanding secured promissory notes to convert their debt totaling more than $2.7 million, including interest, into shares of the company’s common stock.
The deal is subject to the closing of Vuzix’s proposed public stock offering on the Nasdaq stock exchange by June 30 and at a conversion price equal to the public offering price.
Vuzix also said it has entered into a deferred compensation and conversion agreement with President Paul Travers and Chief Financial Officer Grant Russell. As part of the agreement, unpaid salary owed to Travers and Russell totaling more than $1.4 million will be converted to shares of the company’s common stock. The deal also is subject to the closing of Vuzix’s proposed public stock offering.
“This debt restructuring where up to a $4,238,998 in liabilities will be converted to equity will dramatically improve our balance sheet and should help make Vuzix more attractive to our current and new investors,” Travers said in a statement. “Further it shows the continuing support and belief of our senior creditors and management of the exciting future potential for Vuzix.”
Vuzix’s debt restructuring plans are subject to the approval of the Toronto Stock Exchange, where the company’s stock is listed.
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