Dynatronics Announces Conversion of Series C and Series D Preferred Shares
COTTONWOOD HEIGHTS, Utah, Dec. 5, 2017 /PRNewswire/ -- Dynatronics Corporation (NASDAQ:DYNT) today announced the automatic conversion of 1.3 million shares of Series C Preferred Stock and 1.6 million shares of Series D Preferred Stock to Common Stock following its Annual Meeting of Shareholders held November 29, 2017.
With the conversion of these preferred securities Dynatronics now has 7.8 million shares of common stock issued and outstanding. According to the terms of the Series C Preferred Stock, 1.5 million shares are subject to beneficial ownership limitation provisions and were not converted. These unconverted shares are no longer entitled to certain preferences of the Series C Preferred Stock such as the accrual or receipt of dividends, liquidation preferences and redemption rights, and are treated as common shares for such purposes. These unconverted Series C Preferred Stock shares also have no voting rights. Following the issuance of the common stock upon conversion of the Series C and Series D Preferred Stock, the total issued and outstanding equity securities of the company are as indicated in the table below.
| Description |
Common Stock |
|
| Common Shares Outstanding |
7,842,671 |
|
| Convertible Preferred Stock - A(1) |
2,000,000 |
|
| Convertible Preferred Stock - B(1) |
1,459,000 |
|
| Convertible Preferred Stock - C(2) |
1,460,000 |
|
| Total Common & Preferred Shares |
12,761,671 |
|
| (1) |
Convertible one for one. 8% annual dividend payable in cash or stock at Company preference. |
| (2) |
Convertible one for one. Contain no dividend or liquidation preferences, and have no redemption or voting rights. |
In addition to the common and preferred stock outstanding as shown in the table, the company has also issued warrants for the purchase of up to 6,738,500 shares of common stock at an exercise price of $2.75 per share.
"The issuance of Series C and Series D Preferred Stock in connection with the Bird & Cronin transaction was intended to serve as a bridge to the issuance of common shares upon shareholder approval," stated Kelvyn H. Cullimore Jr., Chairman and CEO. "We are pleased the shareholders approved this issuance, and we welcome the Cronin family as significant shareholders of Dynatronics. We are confident that the combination of the two businesses will create significant shareholder value."
About Dynatronics Corporation
Dynatronics designs, manufactures, markets, and distributes advanced-technology medical devices, therapeutic and medical treatment tables, rehabilitation equipment, custom athletic training treatment tables and equipment, institutional cabinetry, orthopedic soft goods, as well as other specialty patient, rehabilitation and therapy products and supplies. Through its various distribution channels, the company markets and sells its products to physical therapists, chiropractors, athletic trainers, sports medicine practitioners, orthopedists, hospitals, clinics, and other medical professionals, and institutions. More information is available at www.dynatronics.com.
Safe Harbor Notification
This press release contains forward-looking statements. Those statements include references to the company's expectations and similar statements. Forward-looking statements in this press release include statements regarding the company's acquisition activities and the creation of significant shareholder value. 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.
SOURCE Dynatronics Corporation
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