Coventry Industries to Effect One For Eight Reverse Split of Its Common Shares.BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla.--(BUSINESS WIRE)--March 8, 1999--Coventry Industries Corp. (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 SmallCap:COVN) today announced that its Board of Directors has approved a one for eight reverse split of its common stock, which will be effective on March 22, 1999. Following the reverse split, the number of authorized common shares will total 3,125,000. The Company also reported that, effective March 8, 1999, it elected to redeem the 1250 shares of series 5% 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". held by ProFutures Special Equities L.P. in exchange for $600,000 in cash, $900,000 of notes, and 31,250 shares of post reverse split common stock. Additionally, the Company has raised $1,000,000 in a private placement through D.L. Cromwell. The proceeds will be used to fund the cash portion of the ProFutures exchange, current operations, and potential acquisitions. As a result of the reverse split, and giving effect to the redemption of 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. and the private placement, the number of common shares issued and outstanding as of March 22, 1999 will total 1,068,750. The Company noted that it determined to take these actions as part of its ongoing efforts to successfully conclude the pending transaction with PeopleFirst LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , a healthcare related employee leasing organization. The redemption of the ProFutures preferred stock was one of the conditions of the exchange agreement between the companies. The Company expects to close on the transaction in approximately 60 to 90 days pending approval from shareholders and regulatory agencies regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. . Coventry Industries Corp., whose subsidiaries include companies involved in manufacturing, marketing and distribution, and employee-leasing services, is a growth oriented Nasdaq Small-Cap company. Certain of the statements contained in the press release may be deemed forward-looking statements in accordance with the Private Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1996. Such statements and other matters addressed in the press release involve a number of risks and uncertainties. Among the factors that could cause actual plans to differ materially from these statements and other matters are the risks and factors detailed, from time to time, in the company's reports with the U.S. Securities and Exchange Commission. |
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