CARDIS CORP. COMPLETES MILESTONE RECAPITALIZATION
CARDIS CORP. COMPLETES MILESTONE RECAPITALIZATION BUENA PARK, Calif., Nov. 4 /PRNewswire/ -- Following shareholder
approval at its annual meeting last week, Cardis Corp. (OTC) has completed a significant recapitalization.
At the annual shareholder meeting on Oct. 29, 1991, approximately two-thirds of shareholders voting gave approval to the recapitalization, which involves a four-fold increase in the outstanding number of common shares while realizing a significant increase in the book value per share, and retroactive interest relief on certain debt. "This is truly a milestone in Cardis Corp.'s history, and one that gives all of us at the company a renewed confidence in the future," stated Kenneth Walker, Cardis president. "As a result of the recapitalization, the company achieved a $25 million equity improvement, progressing from a substantial deficit to a positive position in excess of $9 million. We know that, in spite of a tough economic environment at present, Cardis can now compete more effectively with a stronger capital position." Terms of the recapitalization involve conversion of $20 million of bank debt into new shares of common stock, with remaining bank debt restructured into a revised term loan and revolver. The recapitalization also extends the term of and grants interest relief on approximately $8.1 million of indebtedness owed to a group of suppliers in exchange for shares of Cardis common stock. In addition, mandatorily redeemable preferred stock was converted into Cardis common stock and a one-for-twenty reverse stock split was implemented. The stockholders also approved an increase in the number of options Cardis may grant to its officers and directors. Cardis Corp. currently operates nine warehouse distribution centers and 21 retail stores located primarily in California. -0- 11/4/91 /CONTACT: John L. Olson of Cardis Corp., 714-739-5561; or Craig A. Parsons of Rifkind Pondel & Parsons, 213-207-9300, for Cardis Corp./ CO: Cardis Corp. ST: California IN: SU: RCN AL-SE -- LA003 -- 0602 11/04/91 09:30 EST
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|Date:||Nov 4, 1991|
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