SEDONA Corporation Redeems Series E Convertible Preferred Stock
LIMERICK, Pa.--(BUSINESS WIRE)--May 17, 1999--SEDONA Corporation (NASDAQ:SDNA), today announced that it has entered into agreements with its Series E Convertible Preferred Stock holders and a private investment group that will result in the redemption of the Series E Convertible Preferred Stock, which carries variable conversion rates.
Under the terms of this approximately $3,000,000 equity transaction, the Company will redeem its outstanding Series E Convertible Preferred Stock, and effective immediately there will be no further conversions of these preferred shares by the current holders. The Company expects to complete the redemption within 30 days.
Under the terms of these agreements the new investor group will receive Common Stock, the exact number of shares of which will be computed at a price well above current market. In addition, the new investors will receive one-third of the warrants that are associated with the Series E Convertible Preferred that is being redeemed.
The strike price of these warrants is also considerably above the current market. These agreements will lead to the issuance of significantly fewer shares of common stock than the Company would likely have been required to issue to the original holders upon conversion of the Series E Convertible Preferred, had this transaction not been negotiated.
"While we are grateful for that assistance from our original investors, we believe the redemption of the Series E Convertible Preferred is in the best interests of SEDONA's shareholders," states CEO and President Larry Osterwise.
He continued that, "We are pleased with the faith and confidence that our new investor group has demonstrated, and we believe that this transaction will strengthen SEDONA's financial position and lead to more stability in our stock. With the transaction behind us, we can continue our focus on SpatialVision and the many opportunities at hand." |
