AIR METHODS SHAREHOLDERS APPROVE 1-FOR-6 REVERSE SPLIT AND SALE OF PREFERRED STOCK BY ROBERTSON STEPHENS & CO.
AIR METHODS SHAREHOLDERS APPROVE 1-FOR-6 REVERSE SPLIT AND SALE OF PREFERRED STOCK BY ROBERTSON STEPHENS & CO. DENVER, April 7 /PRNewswire/ -- Air Methods Corp. (NASDAQ: AIRM) today announced that its shareholders have approved the recommended 1-for-6 share reverse split of the company's common stock and a related amendment to its Certificate of Incorporation. In addition, the shareholders authorized the issuance and sale of at least $10 million of preferred stock in a private placement managed by Robertson, Stephens & Co., a leading healthcare investment banking firm. These actions were taken in connection with the company's special meeting of shareholders held on April 6 in Denver. The 1-for-6 share reverse split will take effect today. Accordingly, bid and ask prices quoted on the National NASDAQ System for the company's common stock will immediately reflect this change. In addition, Robertson, Stephens & Co. will shortly commence its offering for sale of at least $10 million of preferred stock to accredited investors as previously disclosed. Substantially all of the net proceeds of this offering will be used to reduce the company's indebtedness, with the remainder, if any, used to begin prepayment of certain of the company's aircraft capital leases. Finally, and as required by the terms of the company's publicly- traded warrants, various aspects of these warrants will now be adjusted to reflect the reverse split. Prior to the reverse split, the company's warrants, which will expire in August, each entitled the holder to purchase 1.926 shares of Common Stock for $8, or the equivalent of $4.15 per share. Following the reverse split, each warrant will now entitle the holder to purchase .321 shares of Common Stock for $8, or the equivalent of $24.90 per share. However, as previously indicated, management of the company intends to consider restructuring the terms and conditions involving the exercise of these warrants in the near future. Air Methods is the largest exclusive provider of state-of-the-art emergency air medical transportation systems and services to hospitals throughout the United States. The company utilizes only instrument flight rules (IFR)-certified pilots and aircraft, including 24 helicopters and four airplanes, to perform these services. In addition, Air Methods offers completely integrated airborne medical systems for administering intensive care to patients while flying to a Level I trauma center or a tertiary care facility, either from outlying hospitals or the scene of an accident. -0- 4/7/92 /CONTACT: W. Terrance Schreier or William H. Critchfield both of Air Methods, 303-790-0587/ (AIRM) CO: Air Methods Corp. ST: Colorado IN: HEA AIR SU:
BB -- DV002 -- 5670 04/07/92 08:02 EDT
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|Date:||Apr 7, 1992|
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