Optical Cable Corporation Repurchases Over 21% of Its Outstanding Shares In Private Transaction
Monday January 13, 9:34 am ET
ROANOKE, Va., Jan. 13 /PRNewswire-FirstCall/ -- Optical Cable Corporation (Nasdaq: OCCF - News) announced today that it has repurchased over 21% of its outstanding common shares, no par value, in a privately negotiated transaction. The Company repurchased the 1,475,867 shares of common stock from A.G. Edwards & Sons, Inc. for a price of $2.00 per share.
ADVERTISEMENT
A.G. Edwards & Sons, Inc. held the repurchased shares as security for personal margin loans made to Robert Kopstein, the former President of Optical Cable Corporation. Although the details of Kopstein's personal margin loan activities with seven brokerage firms (including A.G. Edwards & Sons, Inc.) are not completely known to Optical Cable Corporation, the Company believes that after this repurchase an aggregate of less than 3% of its issued and outstanding common shares remain subject to pledges by Kopstein to brokerage firms making personal margin loans to him.
The $2.95 million purchase price for the shares was paid using a combination of borrowings under the Company's credit facility and cash on hand.
The unregistered shares will be retired by the Company and not held as treasury shares. After the repurchase, Optical Cable has 5,452,785 common shares issued and outstanding. |
