My mistake. I was referring to preferred stock not dividends. Here's a copy of a recent release that may be helpful:
"FONAR TO ISSUE WARRANTS
MELVILLE, NEW YORK - August 1, 1997 - FONAR Corporation (NASDAQ, FONR) a leading manufacturer of MRI scanners headquartered in Melville, New York, announced today that it will issue Warrants to purchase shares of its Common Stock to stockholders who were entitled to receive the Class A Non-voting Preferred Stock (holders of Common Stock of record on October 20, 1995). The issuance of the Warrants is being made pursuant to the settlement reached and approved by the Delaware Court of Chancery in Rubenstein et al. v. Fonar et al. (C.A. No. 14378).
Warrants to purchase approximately 4.9 million shares of the Company's
Common Stock will be issued to the holders of the Company's Common Stock as of October 20, 1995, subject to the limitations, terms and conditions of the settlement as described in the Notice of Proposed Settlement mailed to stockholders earlier this year and as finally approved by the Delaware Court's Order and Final Judgment filed April 29, 1997. The Warrants will be issued as of July 29, 1997 (the "Issue Date") in accordance with the terms of the settlement. Each Warrant will entitle the holder to purchase one share of Fonar's Common Stock at an exercise price equal to the closing price of Fonar's Common Stock on the Issue Date ($2.938 per share). The exercise price will be reduced by any special dividend declared and paid on the Common Stock in connection with the enforcement of the Company's Cancer Detection Patent (U.S. Patent No. 3,789,832). The Warrants will be exercisable from November 29, 1997 through May 28, 2002.
The Company has filed a registration statement with the Securities and Exchange Commission to register both the Warrants and the underlying Common Stock. The Warrants will be sent to the stockholders entitled to receive them shortly after the registration statement becomes effective.
Be sure to visit FONAR's Web site for Company product and investor information. fonar.com
This release may include forward-looking statements from the company that may or may not materialize. Additional information on factors that could potentially affect the company's financial results may be found in the company's filings with the Securities and Exchange Commission.
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