IRIDEX Announces Automatic Conversion of Series A Preferred Stock to Common Stock
MOUNTAIN VIEW, Calif., June 11, 2013 /PRNewswire/ -- IRIDEX Corporation (Nasdaq: IRIX) today announced that it has converted all outstanding shares of its Series A Preferred Stock into 1,000,000 shares of its common stock. The Series A Preferred shares were issued to BlueLine Capital Partners LP (BlueLine) as part of a private placement agreement that occurred in 2007. The Certificate of Designation provides that the Series A Preferred shares will automatically convert into common stock if IRIDEX common stock trades above $5.00 for 30 consecutive trading days.
"This is a positive development for the Company and has been a goal since BlueLine invested in IRIDEX in a private placement and the preferred shares were issued in 2007," Will Moore President and CEO of IRIDEX said. "I want to thank BlueLine for their initial and ongoing support that has allowed us to get to this point. The conversion simplifies our capital structure, is non-dilutive and is an indication that we have made great strides in the past year in meeting commercial and operational milestones and winning investor confidence. The Series A Preferred Stock has always been included in the diluted share count and will be part of the basic and diluted share count going forward."
As a result of the conversion, the separate right of the holders of Series A Preferred Stock to a senior liquidation preference and to appoint a second board member, subject to the approval of the Company, have also ceased.
IRIDEX Corporation was founded in 1989 and is a worldwide leader in developing, manufacturing, and marketing innovative and versatile laser-based medical systems, delivery devices and consumable instrumentation for the ophthalmology market. We maintain a deep commitment to the success of our customers, with comprehensive technical, clinical, and service support programs. IRIDEX is dedicated to a standard of excellence, offering superior technology for superior results. IRIDEX products are sold in the United States through a direct sales force and internationally through a combination of a direct sales force and a network of approximately 70 independent distributors into over 100 countries. For further information, visit the IRIDEX website at http://www.iridex.com/.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, relating to the markets for the Company's common stock. These statements are not guarantees of future performance and actual results may differ materially from those described in these forward-looking statements as a result of a number of factors. Please see a detailed description of these and other risks contained in our Annual Report on Form 10-K for the fiscal year ended December 29, 2012, and our Quarterly Report on Form 10-Q for the fiscal quarter ended March 30, 2013, each of which was filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date and will not be updated.
SOURCE IRIDEX Corporation