Alpharel announces Convertible Preferred Stock offering.SAN DIEGO--(BUSINESS WIRE)--April 26, 1996--Alpharel/Trimco (NASDAQ/NMS:AREL AREL Acute Reference Exposure Level (EPA) ) Friday announced that it has issued 100,000 shares of a newly created Series C Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". for $2 million to a single foreign investor in a private offering exempt from registration under Regulation S of the Securities and Exchange Commission. Jay Tanna, president and chief executive officer, stated, "The funds would be utilized to pursue certain opportunities to accelerate the development and product positioning of a new integrated product line of Alpharel and its recently acquired subsidiary, Trimco Group plc." Tanna added, "The company believes that its existing cash resources should continue to provide adequate capital for all of the company's other near-term cash requirements." The Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. bears a dividend of 8 percent per annum Per annum Yearly. accruing quarterly and is convertible into Alpharel common stock based on a conversion ratio of which the numerator numerator the upper part of a fraction. numerator relationship see additive genetic relationship. numerator Epidemiology The upper part of a fraction is $20 plus accrued and unpaid dividends and the denominator of which is the lesser of $5.16 (the closing price of Alpharel common stock on the day prior to issue) and 80 percent of the average NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on closing price for the company's common stock on the three days immediately before conversion. Conversion may be effected after June 9, 1996, at the option of the holder and after Aug. 23, 1996, at the option of the company. The company is not obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to issue more than 500,000 shares of its common stock upon conversion of the Preferred Stock. If the conversion price declines below the point at which 500,000 shares would otherwise be issued, the company is required to redeem the shares which are not converted. The Convertible Preferred Stock offering was arranged by Global Emerging Markets (GEM), which is a fund management, corporate finance brokerage firm specializing in emerging markets. It has operations in 14 countries, including in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and the United Kingdom. Alpharel/Trimco is a leader in delivering enterprise-wide integrated information management systems to thousands of customers around the world. These systems are installed in manufacturing, utilities, petrochemical, government, banking, transportation and other industries. Documents of all sizes, from letter-size pages to large-scale engineering drawings are handled rapidly over global networks in a very cost-effective manner. Alpharel/Trimco products and customers have won numerous industry awards over the past few years. CONTACT: Alpharel/Trimco, San Diego Jay Tanna or John W. Low 619/625-3000 619/546-7671 (fax) info@alpharel.com http://www.alpharel.com |
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