Elexsys International announces stock agreement.IRVINE, Calif.--(BUSINESS WIRE)--April 3, 1995--Elexsys International Inc., Monday announced that it had entered into an agreement, dated March 29, 1995 with Mr. Milan Mandaric to exchange for 400,000 newly issued shares of common stock of Elexsys International Inc., an aggregate of $4,000,000 in principal amount of Elexsys's outstanding 5 1/2% Convertible Subordinated Debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before Due 2012. In addition, Elexsys International Inc. will pay to Mr. Mandaric an amount equal to accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. but unpaid interest on the debentures exchanged through the closing date, March 31, 1995. Prior to the exchange, Mandaric owned 3,600,000 shares of Elexsys's outstanding Common Stock. As a result of this exchange, Elexsys's balance sheet will be improved in that long-term liabilities Long-Term Liabilities Recorded on the balance sheet, a company's liabilities for leases, bond repayments and other items due in more than one year. Notes: A company's long-term liabilities are accounted for by its debt obligations to other parties which last longer than will be reduced by approximately $4,000,000 and stockholder's equity Stockholder's equity The residual claims that stockholders have against a firm's assets, calculated by subtracting all current liabilities and debt liabilities from total assets. will be enhanced by approximately $3,700,000. This exchange will also reduce Elexsys's annual interest expense by approximately $220,000. Elexsys International Inc. is one of the country's leading manufacturers of both complex and high technology multilayer circuit boards and backpanels and offers advanced, interconnect solutions for the telecommunications, computer, and medical instrumentation markets. CONTACT: Elexsys International Inc. Michael Shimada, CFO See Chief Financial Officer. , 714/833-0870, ext. 201 |
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