Sydney, April 4, 2006 AEST (ABN Newswire) - Life Therapeutics (ASX: LFE) announced today that it has reduced its total debt by A$4.5m (US$3.4m) following the conversion by Indus Capital of its remaining Tranche 1 Convertible Notes into 4,292,500 Life Therapeutic shares.
As a result of this conversion, Life Therapeutics has reduced its total Convertible Note debt from A$21.7m to A$16.1m over the last 6 months.
"As forecast at the Annual General Meeting in November 2005, Life Therapeutics is working to deliver significant revenue growth and strong, positive profits to shareholders. The debt reduction will improve our pre-tax profit by approximately A$500,000 per year," said Dr. Hari Nair, CEO and Managing Director of Life Therapeutics. Dr. Nair added, "The market for plasma products is currently very strong and we are preparing to meet this growing demand, particularly in the specialty hyperimmune area such as the Flu hyperimmune plasma."
"We are very pleased with Life Therapeutics' operating performance over the last 6 months and see our shareholding in Life Therapeutics as a long term investment," said Mr. Leonard De Somma, Indus Capital representative.
Following this conversion Life Therapeutics will have 93,122,423 shares on issue. Post the conversion Indus Capital becomes Life Therapeutics' largest institutional shareholder with 4.9% of the enlarged issued capital.
Contact
USA
Jesse McCorvey
Vice President
Ph +1 404-300-5030
Australia
Prakash Patel
Company Secretary
Corporate Communications
Ph +61 2 8977 9000
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