Radient Pharmaceuticals Corporation (PINK:RXPC) is now in the sub-penny zone. On Wednesday, RXPC closed at $0.008, and yesterday it dropped further to $0.0054.
Huge volumes are changing hands these days as RXPC is dropping deeper. The company filed an 8-K form with the SEC that revealed the most recent developments around the Alpha Capital Anstalt and Whalehaven Capital Fund Ltd complaint.[BANNER]
On Aug. 25, RXPC entered into a new settlement agreement that amended and restated the original agreement. Under the term of the final settlement the company issued their 8% convertible promissory notes in the amount of approximately $4.6 million to Alpha Capital and $3.5 million to Whalehaven.
RXPC is obligated to retire the notes in monthly installments starting January 31, 2012. It can do that in cash or by shares of common stock in the amount of 6.25% of the principal amount of each note plus accrued interest.
The company will have to either increase the number of authorized shares to 1.5 billion, or effect a reverse split. Either way, the shareholders have already lost most of their investments, and they may continue to lose more. It is not clear when or where this downfall will stop.
