Consolidated Capital of North America Announces $2 Million Private Financing.DENVER--(BUSINESS WIRE)--March 11, 1998--Consolidated Capital of North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. Inc. (Nasdaq/BB:CDNO) Wednesday announced that it has closed a 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". financing of $2 million with a group of institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. . The company intends to use the funds for working-capital purposes. Paul Bagley, the chairman of the company, said, ``We are pleased that these investors have demonstrated such confidence in the company.'' The preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. are convertible into common shares of the company beginning April 20, 1998. Based on the conversion price formula, the preferred shares will be convertible into no fewer than 1.14 million common shares. In connection with the financing, the investors received warrants to purchase in the aggregate 250,000 common shares of the company at an exercise price of $2.38 per share. Consolidated Capital of North America, through its subsidiary, Capitol Capitol, seat of the U.S. Congress Capitol, seat of the U.S. government at Washington, D.C. It is the city's dominating monument, built on an elevated site that was chosen by George Washington in consultation with Major Pierre L'Enfant. Metals Co., operates a Los Angeles-based steel service and distribution business specializing in the processing of hot and cold rolled steel. Consolidated's Angeles Metal Trim Co. subsidiary fabricates and sells steel framing for commercial and residential structures worldwide from its plants in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. and Vancouver, Wash., and from distribution facilities located in Kent, Wash., and Sacramento, Calif. Consolidated also manufactures and sells low-cost pre-engineered housing internationally through its California Building Systems Inc. subsidiary. CONTACT: Consolidated Capital of North America Inc., Denver Jeanette Avery, 888/313-8051 |
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