Article: Implant Sciences Converts $3 Million Note into Convertible Preferred Stock; Convertible Preferred Stock Instrument Also Provides an Additional $2 Million to the Company Which is Convertible at a Premium to Current Market Price.

WAKEFIELD, Mass. -- Implant Sciences Corporation (AMEX: "IMX", "IMX.WS") a developer and manufacturer of products for national security, medicine and industry, today announced that it has paid off the $3 million 120-day note and has raised an additional $2 million from Laurus Master Fund, Ltd. ("Laurus") on September 30, 2005. The Company issued 500,000 shares of Series D Cumulative Convertible Preferred Stock which can be paid back in cash or converted into the Company's common stock at a fixed conversion price equal to $6.80 per common share, up to a maximum of approximately 735,000 shares, over a thirty-six (36) month period. The preferred stock has a dividend equal to ...

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