Item
8.01
Other Events.
The
Company announced today that it has received requests from certain of its
Convertible Debenture holders to convert some or all of their debentures to
common stock. The Company presently has approximately 2.44 billion shares of
common stock outstanding and is authorized to issue up to an additional 1.06
billion shares. Due to the full ratchet adjustments in the debentures, the
effective conversion price on the debentures is presently $0.0007 per share,
which would enable conversions of approximately $747,000 of principal amount
of
debentures based upon its current authorized capitalization. The Company intends
to provide debenture holders the right to convert up to 10% their debenture
principal amount over the next seven business days, so as to equitably allocate
conversion rights, based upon available common stock. If any common stock
remains available, then additional conversion requests would come on a first
come, first served basis until there is no additional authorized common stock.
The total principal and accrued unpaid interest of the Company with respect
to
its April 2007 convertible debentures is approximately $8.4 million. Conversion
of the maximum amount of debentures would still leave the Company with
significant indebtedness. A substantial risk continues that the Company will
need to seek protection in the near future under Chapter 11 of the US Bankruptcy
laws, due to the outstanding indebtedness of the Company, its past due accounts
payable and multiple litigation. Accordingly, prospective purchasers of the
Company’s common stock and creditors seeking conversion of indebtedness into
common stock should give careful consideration to the effect that a bankruptcy
filing would have on their investment in the Company. Additionally, the Company
has previously announced that it has received a letter from the Securities
and
Exchange Commission, dated May 14, 2008, stating that it will seek to deregister
the Company’s common stock. Although the Company has not received a notice of
administrative action as of the date of this Form 8-K, it is expected that
such
notice will be forthcoming at some time in the future, at which time the Company
expects that its stock will be suspended from trading by SEC and that SEC will
seek to make the suspension a permanent halt.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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Dated:
September 5 2008
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XECHEM
INTERNATIONAL, INC.
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By:
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Robert
Swift
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Chief
Oversight Officer
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