This excerpt taken from the ONI 8-K filed Jan 31, 2008.
Item 1.01 Entry into a Material Definitive Agreement.
On January 16, 2008 our Board of Directors approved an amendment to the outstanding warrants that were originally issued in connection with the Companys private placement on August 7, 2007. The warrants expire on August 8, 2008 and the Board of Directors determined it would be in the best interest of the Company to amend the exercise price of the outstanding warrants prior to expiration by adjusting the exercise price from $0.58.
After discussion with the American Stock Exchange (AMEX) concerning the issue of compensation resulting from a possible discount to an insider, the disinterested members of the Board resolved on January 28, 2008 to revoke the previous approved resolution dated January 16, 2008, and approve a new resolution that amends the warrant price from the $0.58 to $0.44, which was the closing price on the American Stock Exchange of the Companys common stock on the originally date of issue, August 7, 2007. This amended warrant price is only effective between the dates of January 28, 2008 through February 29, 2008, 5:00 PM EST. After this period, the warrant price will return to the original issue price of $0.58. The reduction in the exercise was made in an effort by the Company to increase the likelihood that the warrants would be exercised by the holders of the warrants and thereby provide the Company with needed capital. All other terms and conditions shall remain the same.
Because our CEO and President Ronald Evens participated in the private placement and therefore is a holder of the warrants, our disinterested directors also separately approved the amendment to the warrants.
There can be no assurances that the reduction in the warrant exercise price will result in any exercise of the warrants at the revised exercise price.
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.