Bermuda-registered CalciTech Ltd. has announced that Epsom Investment Services, under the terms of its working capital convertible credit facility with CalciTech, served notice on February 19 that it would convert $600,000 of its loan into CalciTech common shares.

The shares will be issued at a conversion price of 80 percent of the average closing price of the preceding ten trading days and will be restricted from trading. Epsom has confirmed that the investors in these shares have a long-term interest in the company and do not intend to sell their shares at this time.

The credit facility has now been renewed for a further term of 18 months at a reduced interest rate of seven percent and with a reduced maximum draw down of $2.5 million. After the conversion, approximately $1.4 million is currently drawn and outstanding.

CalciTech is now arranging project finance for the funding of its proposed synthetic calcium carbonate (SCC) plant in Germany of an estimated cost of 17.2 million. Application has been made, as previously reported, for a grant of up to 50 percent of the anticipated cost. Additional arrangements are also being made with a view to raising equity in order to contribute up to 15 percent in the CAPEX for the German plant and provide working capital for further project procurement. Further announcements are expected to be made in this regard shortly.

CalciTech has also announced that it received notice on February 13 to exercise two directors' options on 510,000 shares at a price of 29 Canadian cents. In accordance with the company's option plan, serving directors are issued with new-like options on the exercise of existing holdings. Therefore, the company has announced five-year options on 500,000 common shares from February 25, at a price of 45 Canadian cents. Following this issue, there are currently outstanding total options on 1 million common shares.

Roger Leopard, CalciTech's president, commented: "This is very encouraging for our shareholders, when both our financial advisers and directors support our company in such a positive manner."

The issue of shares under the convertible loan and for exercise of options are subject to approval by the Toronto Venture Exchange.