BioSante exchanges senior notes for common stock

BioSante Pharmaceuticals (NASDAQ:BPAX) has entered into a privately-negotiated securities exchange agreement with a holder of its 3.125% convertible senior notes, due May 1, 2013, issuing 6,723,173  common shares to the note holder in exchange for $5 million principal amount of notes, including accrued and unpaid interest.

Following the transaction, a total of $15.8 million principal amount of the notes will remain outstanding.

“This transaction will extend BioSante’s cash runway and is important as we continue to analyze the best path forward for LibiGel, investigate alternative strategies and explore new product development projects through in-licensing and mergers and acquisitions,” CFO Phillip Donenberg said in a statement.

“We appreciate the flexibility and continued support of our note holder as we rebuild BioSante to maximize value for our stockholders,” he added.