Item
8.01. Other
Events.
On
January 5, 2006, Xechem International, Inc. (the “Xechem”) and its subsidiary,
Xechem Pharmaceuticals Nigeria Ltd. (“Xechem Nigeria”) received executed copies
of a series of agreements with Alembic Limited (“Alembic”), dated as of December
22, 2005. For a description of the new agreements, see Current Report on Form
8-K filed with the Securities and Exchange Commission on January 6, 2006 (File
No. 000-23788).
As
part
of these agreements, Xechem and Alembic agreed to terminate an old note in
favor
of a “New Note.” Pursuant to the terms of the New Note, Xechem agreed to repay
Alembic in full the outstanding principal and interest remaining from the New
Note as follows: $1,000,000 to be paid on or before January 31, 2006 (the
“Initial Payment”), with the balance (the “Remaining Balance”) due on or before
December 31, 2006. Furthermore, for every month beginning July 2006, in which
any portion of the New Note remained unpaid, Xechem agreed to pay Alembic as
additional consideration the sum of $16,600, for a total of up to $99,600.
The
New Note bears interest at the rate of 8%.
As
of
December 31, 2006, Xechem had paid Alembic $1,000,000 of the principal amount
due plus interest in the amount of $190,000 on the New Note. The Remaining
Balance of the New Note ($2,000,000) plus interest and penalty in the combined
amount of approximately $250,000 was due on or before December 31, 2006.
According to the Termination of Agreements, if the Remaining Balance and
interest is not paid on or before December 31, 2006, subject to written notice
from Alembic and a right to cure within 10 days as set forth in the New Note,
Xechem would be in breach of the Termination of Agreements and the New Note.
Xechem
did not pay the amounts due Alembic on December 31, 2006. Xechem and Alembic
extended the Maturity Date, pursuant to a Letter Agreement, dated January 4,
2007, to January 31, 2007. Pursuant to a second Letter Agreement, dated January
31, 2007, the parties agreed to extend the Maturity Date to February 24, 2007.
As consideration for the second extension, Xechem agreed to pay to Alembic,
in
reduction of the indebtedness due under the Note, the sum of $100,000. Pursuant
to a third Letter Agreement, dated as of February 24, 2007 (executed March
1,
2007), the parties agreed to extend the Maturity Date to March 31, 2007. As
consideration for the third extension, Xechem paid Alembic, in reduction of
the
indebtedness due under the Note, the sum of $100,000 on March 1, 2007, which
payment was a condition to the extension.
Furthermore,
the parties agree that if Xechem makes a principal payment to Alembic in
reduction of the Note of not less than $1,000,000, together with accrued
interest, on or before March 31, 2007, then the Maturity Date will be extended
for an additional six months.
As
of
March 6, 2007, the Company borrowed $480,000 from Michael and Betsy Brauser,
which amount bears simple interest at 8% per annum and is due and payable in
six
months.
SIGNATURES
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.
Dated: March
6,
2007
| XECHEM INTERNATIONAL, INC. | ||
| |
|
|
| By: | /s/ Ramesh C. Pandey, Ph.D., | |
| Ramesh C. Pandey, Ph.D., | ||
| Chief Executive Officer | ||
