Cyanotech Reports $2.1 Million of Preferred Stock Dividends No Longer Payable.Business Editors KAILUA-KONA, Hawaii--(BW HealthWire)--Dec. 18, 2000 Cyanotech Corporation (Nasdaq NMS See NetWare Management System. :CYAN) reported that it has learned that a major shareholder, Fireman's Insurance Company ("Fireman's") of Newark, NJ, an indirect, wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of CNA Financial Corporation, has converted all of its 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". of Cyanotech Corporation into common stock and has been a major seller of the Company's common stock. As a result of this conversion, there are no longer outstanding any shares of Series C Convertible Preferred Stock. Fireman's held a total 595,031 shares of Series C 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. , which were converted into 2,975,155 shares of common stock on several occasions since February 2000. According to CNA Financial Corporation, all but 605,000 of the converted shares have been sold in open market transactions since then. "As a benefit to Cyanotech, a total of $2.1 million of preferred stock dividends that have been in arrears are no longer payable as a result of Fireman's converting its holdings into common stock from Series C Preferred Stock," said Ronald P. Scott, Cyanotech's CFO See Chief Financial Officer. . "Additionally, these continuing stock sales by Fireman's provide a context for the heightened activity and selling pressure on the Company's stock, which we believe, at recent price levels, does not reflect Cyanotech's potential for growth and improved performance." Cyanotech Corporation, the world's leader in microalgae technology, produces high-value natural products from microalgae, and is the world's largest commercial producer of natural astaxanthin from microalgae. Products include BioAstin(TM) natural astaxanthin, a powerful antioxidant antioxidant, substance that prevents or slows the breakdown of another substance by oxygen. Synthetic and natural antioxidants are used to slow the deterioration of gasoline and rubber, and such antioxidants as vitamin C (ascorbic acid), butylated hydroxytoluene with expanding applications as a human nutraceutical; NatuRose(R) natural astaxanthin for the aquaculture aquaculture, the raising and harvesting of fresh- and saltwater plants and animals. The most economically important form of aquaculture is fish farming, an industry that accounts for an ever increasing share of world fisheries production. and animal feed industry; Spirulina spirulina Any cyanobacteria in the genus Spirulina. A traditional food source in parts of Africa and Mexico, spirulina is an exceptionally rich source of vitamins, minerals, and protein, and one of the few nonanimal sources of vitamin B12. Pacifica(R), a nutrient-rich dietary supplement; and phycobiliproteins, which are fluorescent pigments used in the immunological diagnostics market. Corporate and product information is available at http://www.cyanotech.com SAFE HARBOR -- Except for statements of historical fact, the statements in this press release are forward-looking. Such statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include, but are not limited to, general economic conditions, changes in sales levels to our largest customers, weather patterns, risks associated with the acceptance of new products, competition, foreign exchange fluctuations, government regulation, and other factors more fully detailed in the company's recent quarterly 10-Q and annual 10-K filings with the Securities and Exchange Commission. |
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