Digirad Announces Listing and Trading of Preferred Stock on Nasdaq Global Market Under Symbol “DRADP”
September 13 2019 - 6:00AM
Digirad Corporation (NASDAQ: DRAD) (“Digirad” or the “Company”)
announced that its newly issued 10.0% Series A Cumulative Perpetual
Preferred Stock, with a stated value and liquidation preference of
$10 per share (the “Digirad Preferred Stock”), has been listed for
trading and has begun trading on The Nasdaq Global Market (the
“Preferred Stock Listing”) under the ticker symbol “DRADP”.
The Preferred Stock Listing was completed in
connection with the Company’s issuance of an aggregate of
approximately 1.6 million shares of Digirad Preferred Stock, which
shares were registered with the Securities and Exchange Commission
effective as of August 9, 2019, pursuant to the Company’s
acquisition of ATRM Holdings, Inc. on September 10, 2019. In
addition, the Company issued an additional 300,000 shares of
Digirad Preferred Stock in a contemporaneous unregistered private
placement to Lone Star Value Investors, LP.
About Digirad
Digirad designs, manufactures, and distributes
diagnostic medical imaging products. Digirad operates in three
segments: Diagnostic Services, Mobile Healthcare, and Diagnostic
Imaging. The Diagnostic Services segment offers imaging and
monitoring services to healthcare providers as an alternative to
purchasing the equipment or outsourcing the job. The Mobile
Healthcare segment provides contract diagnostic imaging, including
computerized tomography (“CT”), magnetic resonance imaging (“MRI”),
positron emission tomography (“PET”), PET/CT, and nuclear medicine
and healthcare expertise through a convenient mobile service. The
Diagnostic Imaging segment develops, sells, and maintains
solid-state gamma cameras.
About ATRM
ATRM manufactures modular housing units for
commercial and residential applications. ATRM operates in two
segments: (i) modular building manufacturing and (ii) structural
wall panel and wood foundation manufacturing, including building
supply retail operations. The modular building manufacturing
segment is operated by KBS Builders, the structural wall panel and
wood foundation manufacturing segment is operated by EdgeBuilder,
and the retail building supplies are sold through Glenbrook Lumber.
KBS Builders, EdgeBuilder and Glenbrook Lumber are wholly-owned
subsidiaries of ATRM.
Forward-Looking Statements
The Securities and Exchange Commission (the
“SEC”) encourages companies to disclose forward-looking information
so that investors can better understand a company’s future
prospects and make informed investment decisions. Certain
statements in this report are forward-looking statements and are
made pursuant to the safe harbor provisions of the Securities
Litigation Reform Act of 1995, as amended. These forward-looking
statements reflect, among other things, the Company’s current
expectations, plans, strategies, and anticipated financial results.
There are a number of risks, uncertainties, and conditions that may
cause the Company’s actual results to differ materially from those
expressed or implied by these forward-looking statements. These
risks and uncertainties include the Company’s ability to
successfully integrate ATRM’s operations and realize the synergies
from the Merger, as well as a number of factors related to the
Company’s business and that of ATRM, including economic and
financial market conditions generally and economic conditions in
the Company’s and ATRM’s markets; various risks to preferred
stockholders of not receiving dividends and risks to the Company’s
ability to pursue growth opportunities if the Company continues to
pay dividends according to the terms of the Company Preferred
Stock; various risks to the price and volatility of the Company’s
Preferred Stock; the substantial amount of debt and the Company’s
ability to repay or refinance it or incur additional debt in the
future; the Company’s need for a significant amount of cash to
service and repay the debt and to pay dividends on the Company
Preferred Stock; restrictions contained in the debt agreements that
limit the discretion of management in operating the business;
regulatory changes, including changes to reimbursement policies,
development and introduction of new technologies and intense
competition in the healthcare industry; risks associated with the
Company’s possible pursuit of acquisitions; system failures; losses
significant contracts; disruptions in the relationship with third
party vendors; losses of key management personnel and the inability
to attract and retain highly qualified management and personnel in
the future; changes in the extensive governmental legislation and
regulations governing healthcare providers and the provision of
healthcare services; high costs of regulatory compliance; the
competitive impact of legislation and regulatory changes in the
healthcare industry; and liability and compliance costs regarding
environmental regulations. A detailed discussion of these and other
risks and uncertainties that could cause actual results and events
to differ materially from such forward-looking statements are
discussed in more detail in the Company’s filings with the SEC,
including their reports on Form 10-K and Form 10-Q. Many of these
circumstances are beyond the Company’s ability to control or
predict. Moreover, forward-looking statements necessarily involve
assumptions on the Company’s part. These forward-looking statements
generally are identified by the words “believe”, “expect”,
“anticipate”, “estimate”, “project”, “intend”, “plan”, “should”,
“may”, “will”, “would”, “will be”, “will continue” or similar
expressions. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause
actual results, performance or achievements of the Company and its
subsidiaries to be different from those expressed or implied in the
forward-looking statements. All forward-looking statements
attributable to us or persons acting on the Company’s behalf are
expressly qualified in their entirety by the cautionary statements
that appear throughout this report. Furthermore, forward-looking
statements speak only as of the date they are made. Except as
required under the federal securities laws or the rules and
regulations of the SEC, the Company disclaims any intention or
obligation to update or revise publicly any forward-looking
statements. You should not place undue reliance on forward-looking
statements.
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For more information contact: |
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Digirad Corporation |
Investor Relations |
Chairman of the Board |
The Equity Group |
Jeffrey E. Eberwein |
Lena Cati |
203-489-9501 |
212-836-9611 |
ir@digirad.com |
lcati@equityny.com |
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