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
Equivalent Shares
|
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.
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SOURCE Dynatronics Corporation