Berger Holdings, Ltd. Eliminates Potential Future Dilution of 828,235 Shares
PHILADELPHIA--(BUSINESS WIRE)--Oct. 3, 2000--Berger Holdings, Ltd. (NASDAQ: "BGRH") issued 125,000 shares of its common stock to one of its institutional investors in exchange for the cancellation of warrants to purchase 240,000 shares exercisable at $4.25 per share and the elimination of rights pursuant to an outstanding subordinated debenture that would have allowed that debenture to be converted into an additional 588,235 shares at $4.25 per share.
As part of this transaction, Berger also agreed to buy back the newly issued 125,000 shares for $250,000 by December 29, 2000 should the investor choose to sell and to increase the interest rate on the debenture by one percentage point.
This transaction, which eliminates a potential future dilution of 828,235 shares, is in addition to the previously announced authorization to acquire up to 1,060,000 currently outstanding shares on the open market. As of October 2, 2000, 363,700 shares have been purchased, leaving 696,300 shares authorized to be acquired under this program.
Mr. Theodore A. Schwartz, Chairman and CEO of the Company, stated, "The Board of Directors is convinced that the elimination of this potential future dilution is in the best long term interest of our shareholders." He further stated, "We intend to continue reducing our outstanding shares while we grow our revenue and earnings both internally and through strategic accretive acquisitions." |
