Dr. Essig said, "In these last 18 months, the Company has made several transformative changes to strengthen the platform, both organically and in preparation for tactical and carefully-planned acquisitions. We have confidence in the Company's strategy."
The transaction is structured as a sale of 390,000 shares of Series A Preferred, and common stock purchase warrants to purchase a total of 585,000 shares of common stock. Each share of Series A Preferred is convertible into one share of the Company's common stock and accrues an 8% cash or common equity dividend, compounded annually. The warrants have an exercise price of $2.75 per common share and are exercisable for a term of six years. Additionally, the Company granted the investors certain registration rights in connection with the shares of common stock underlying the conversion of the preferred stock and exercise of the warrants. A Current Report on Form 8-K to be filed by the Company contains additional detail regarding the offering of these securities.
Dynatronics manufactures, markets and sells advanced-technology medical devices, orthopedic soft goods and supplies, treatment tables and rehabilitation equipment for the physical therapy, sports medicine, chiropractic and podiatry markets. More information is available at www.dynatronics.com.
Cautionary Note on Forward-Looking Statements
This press release contains forward-looking statements. Those statements include references to the Company's expectations and similar statements. Actual results may vary from the views expressed in the forward-looking statements contained in this release. The development and sale of the Company's products are subject to a number of risks and uncertainties, including, but not limited to, changes in the regulatory environment, competitive factors, inventory risks due to shifts in market demand, market demand for the Company's products, availability of financing at cost-effective rates, and the risk factors listed from time to time in the Company's SEC reports.
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SOURCE Dynatronics Corporation