SC&T International, Inc. Resolves Convertibility Issue With Preferred Shareholders.SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Nov. 6, 1997--SC&T International, Inc. (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 : SCTI SCTI Stanford Center for Technology and Innovation SCTI Sodium Components Test Installation SCTI Southern California Transplantation Institute (and Liver Center) SCTI Small Component Test Installation ) announced today that the Company and its shareholders of Outstanding 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". have reached an agreement with 94% of its preferred shareholders in which all matters concerning the Outstanding 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. have been resolved. SC&T will issue certain unrestricted shares to Outstanding Preferred holders in satisfaction of the matters concerning the Company's Outstanding conversion obligations. In addition, the Company will issue ceratin warrants at a strike price of $1.25 to all Outstanding Preferreds who accepted the Company's conversion. Should all of the warrants be exercised, SC&T will receive $2.6 million in capital. In addition, the number of outstanding shares will remain unchanged with the result that there will be no additional dilution of SC&T shareholders in investments. Rick Stone, counsel to SC&T International, Inc. said, "We are gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. that we and shareholders of SC&T Outstanding Preferred Stock have been able to reach a fair and equitable agreement regarding the stock's convertibility. As a result, we believe that we have successfully reinforced investor confidence in SC&T while protecting our listing on the NASDAQ Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. ." Tom Carlini, Director of Finance for SC&T concluded, "We look forward to the important holiday season with confidence in the consumer reception of our cutting edge products; with anticipation of our new alliance with Mattel and the success we are enjoying abroad with substantially increased sales." SC&T International, Inc. develops and markets innovative accessory and peripheral products for the computer and video game industries under its PLATINUM SOUND(R) name. The Company's products include subwoofer and speaker sound enhancement systems and the PER4MER mer Among the Cheremi and Udmurt peoples of Russia, a sacred grove where people of several villages gathered periodically to hold religious festivals and sacrifice animals to nature gods. (TM) RACING WHEEL. For more information call 800/408-4084 or visit our web site at www.platinumsound.com . -0- Statements contained in this release which are not historical facts are forward looking statements that involve risks and uncertainties that could cause actual results or future events to differ from these contained herein. Factors that could cause actual results or events to differ are detailed in the company's Securities and Exchange Commission filings. CONTACT: Martin E. Janis & Company, Inc. Elliott Jacobson, 312/943-1100 |
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