DYNATEC INTL INC, please note trading volume on 2/22/00 and press release on 2/23/00.
Ticker: DYNX
Date Volume High/Ask Low/Bid Close
-------- ---------- ---------- ---------- ----------
02/17/00 28,800 1 3/8 1 3/16 1 3/16
02/18/00 10,000 1 7/16 1 1/4 1 7/16
02/22/00 339,900 3 3/8 1 1/2 2 5/8
02/23/00 228,400 3 1/2 2 5/8 3 1/4
02/24/00 101,800 3 1/2 2 13/16 3
02/25/00 50,200 3 1/16 2 13/16 3 1/16
02/28/00 18,500 3 1/16 3 3 1/16
02/29/00 60,300 3 1/8 3 3 1/16
03/01/00 21,900 3 1/8 3 3
03/02/00 20,900 3 1/8 3 3 1/8
03/03/00 13,000 3 3/16 3 1/16 3 1/8
03/06/00 9,600 3 3/16 2 7/8 3
03/07/00 45,200 3 1/8 2 7/8 3 1/8
03/08/00 11,200 3 1/8 2 13/16 2 13/16
03/09/00 22,100 3 1/8 2 3/4 2 15/16
03/10/00 22,200 3 1/8 2 3/4 3 1/16
03/13/00 59,600 3 1/4 3 3 1/4
03/14/00 146,900 4 3/16 3 3/16 3 15/16
03/15/00 66,000 4 3/8 3 7/8 3 15/16
03/16/00 10,800 3 7/8 3 3/4 3 7/8
03/17/00 2,000 3 7/8 3 13/16 3 13/16
03/20/00 16,400 3 13/16 3 5/8 3 3/4
03/21/00 13,500 3 13/16 3 1/2 3 1/2
03/22/00 33,900 3 11/16 3 3/8 3 1/2
03/23/00 2,900 3 11/16 3 3/8 3 1/2
03/24/00 1,900 3 11/16 3 3/8 3 11/16
03/27/00 8,100 3 11/16 3 7/16 3 7/16
03/28/00 5,200 3 3/4 3 1/2 3 1/2
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02/22/00 339,900 3 3/8 1 1/2 2 5/8
Dynatec International, Inc. Retires Convertible Debentures
SALT LAKE CITY, Feb. 23 /PRNewswire/ -- Dynatec International, Inc. (Nasdaq: DYNX) announced today that it has retired the Company's outstanding convertible debentures in a cash and debenture conversion transaction which included $1,500,000 in cash and the simultaneous conversion into 94,500 shares of restricted common stock.
Dynatec issued convertible debentures in the aggregate principal amount of $1,500,000 in a financing transaction concluded in May 1998. The convertible debentures were held by five separate investment funds. The convertible debentures, together with interest accrued thereon at the rate of 12% per annum were convertible into shares of common stock at a per share price equal to 75% of the average of the three lowest closing bid prices of Dynatec's common stock during the 22 trading day period immediately preceding the conversion date. Simultaneously with the issuance of the convertible debentures, the Company issued warrants to purchase a total of 750,000 shares of its common stock. Warrants to purchase 300,000 of such shares were entitled "A Warrants" and had an exercise price of $6.50 per share. The remaining warrants to purchase 450,000 shares were entitled "B Warrants" and had an exercise price of $6.50 per share. In addition, Dynatec was obligated to register for resale the shares issuable upon conversion of the convertible debentures. The Company prepared and filed a registration statement with the Securities and Exchange Commission, which was subsequently amended three times, but that registration statement never became effective. The absence of the registration subjected the Company to cash penalties and damages payable to the convertible debenture holders.
In exchange for cash payment of $1,500,000 and the simultaneous conversion of 94,500 common shares, the holders of the convertible debentures agreed to cancel outstanding convertible debentures, forego their right to interest accrued thereon, to tender to Dynatec for cancellation all of the A Warrants and B Warrants, and release all claims to cash penalties and damages resulting from absence of an effective registration statement or otherwise in connection with the convertible debenture financing transaction.
In a related transaction, Dynatec obtained $1,600,000 of funding from the sale of 1,222,811 shares of its restricted common stock to seven separate investors and/or investment funds (none of which are affiliated either with Dynatec or the convertible debenture holders). Such common stock was issued in a private placement and at a purchase price equal to 100% of the average of the closing bid prices of Dynatec's common stock during the five trading days immediately preceding the funding dates. The average per share purchase price was $1.31. Dynatec will use $1,500,000 of the proceeds of that placement to fund the retirement of the convertible debentures and $100,000 for operating capital.
"We believe that today we have taken a significant step towards allowing Dynatec to execute its Year 2000 business plan," said Frederick W. Volcansek, Sr., Dynatec's Chairman and Chief Executive Officer. "Until now there has been a serious market overhang resulting from the ability of the debenture holders to convert at a significant discount to prevailing market prices," Mr. Volcansek continued. "Over the past year, one of the primary goals of the new management team has been to improve Dynatec's capital structure. With that done, we can now intensify our focus on growing the current product lines, and the exploration of related marketing and product opportunities that support our corporate strategic growth imperative."
Dynatec International, Inc. is a Salt Lake City, Utah-based manufacturer and distributor of a broad line of consumer products.
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which represent Dynatec's expectations and beliefs concerning future events, including any effects of the agreement that is discussed in the press release. Dynatec wishes to caution and advise readers that these statements involve risks and uncertainties that could cause outcomes to differ materially from any forward-looking statement or views expressed herein including uncertainties inherent in Dynatec's dependency on a third party's abilities to effectively distribute products.
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SOURCE: Dynatec International, Inc.
CONTACT: Investor Relations, Dynatec International, Inc., 801-973-9500 |
