Rim Semiconductor Company Reduces Convertible Debt by 34%
Rim Semiconductor Company (OTCBB: RSMIE), a company that develops technology for telecommunications service providers, announced today that it has reduced its indebtedness to its convertible note holders by 34% to $2,759,000, versus $4,182,000, as reported in its most recent 10QSB.
The reduction was effected when holders of its two-year 7% Senior Secured Convertible Debentures and its two-year 10% Secured Convertible Notes converted some of their principal and interest into shares of Rim Semi’s Common Stock. The company has 4 billion shares of common stock authorized for issuance. As of July 11, 2008, following the issuance of the shares, the Company has issued all of its authorized common stock. Since July 11th, the closing price of RSMI has risen 100% from $0.0005 to $0.001 per share.
“I am very pleased that our convertible debt has reduced by 34%,” stated Brad Ketch, the company’s president and chief executive officer. “We issued these shares to investors who have invested in us before, and who continue to show support for our long-term growth.”
In addition to the debt reduction, the company projects that the value of the derivative liability on its balance sheet will also proportionately decline when the derivative liability calculations are made at the end of the quarter, and based upon the closing price of RSMI on July 31, 2008.
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