American Building Control Entered into a Standstill Agreement with Victoria & Eagle Strategic Fund.Business Editors LEWISVILLE, Texas--(BUSINESS WIRE)--Dec. 22, 2003 American Building Control, Inc. (Nasdaq:ABCX) announces that it has entered into a Standstill Agreement Standstill agreement Contract by which the bidding firm in a takeover attempt agrees to limit its holdings of another firm. standstill agreement (the "Agreement") with Victoria & Eagle Strategic Fund, Ltd. ("VESF VESF Virgo-EGO (European Gravitational Observatory) Scientific Forum "), which owns all the Company's Series "A" 12% Cumulative 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". (the "Preferred Stock"). The Agreement provides that until June 18, 2005, (i) the Company shall not redeem the Preferred Stock of the Company owned by VESF; (ii) VESF shall not sell or transfer the Preferred Stock; and (iii) the preferred dividend, currently at 12%, will be reduced to 200 basis points above one year LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). per annum. "The standstill agreement will give us the stability to pursue exciting opportunities in the security business," said Mr. Danny W. Mills, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of American Building Control. "The reduction of the preferred dividend also benefits the Company's cash flow," Mr. Mills said. About American Building Control, Inc. With headquarters located in the Dallas suburb of Lewisville, Texas, American Building Control Inc. (formerly Ultrak, Inc.) is a global leading provider of access control, consumer/do-it-yourself, industrial video product, mobile video-product, and alarm-management products as well as services. For more information on American Building Control please call (800) 221-7225. Forward-Looking and Cautionary Statements Except for the historical information and discussions contained herein, certain statements included in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in the company's filings with the Securities and Exchange Commission. |
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