ALLERCARE CONVERTS SUBORDINATED CONVERTIBLE DEBENTURES
ALLERCARE CONVERTS SUBORDINATED CONVERTIBLE DEBENTURES BLOOMINGTON, Minn., June 19 /PRNewswire/ -- Allercare, Inc.
(NASDAQ: ALLR) Bloomington, announced today that $900,000 worth of the company's Subordinated Convertible Debentures, due Sept. 1, 1994, and accrued interest, was converted into common stock of the company at a conversion price of $0.375 per share. The conversion was effective June 15, 1992. This conversion resulted in the issuance of 2,428,667 shares of common stock bringing the total shares outstanding to 9,394,728. The converted debentures were owned by the company's chairman of the board of directors, and another director and officer of the company.
The debt to equity conversion will save the company $90,000 of annual interest expense. In addition, the conversion reduces the company's debt service requirements by an additional $210,000 on an annualized basis beginning Sept. 1, 1992. The company offered to reduce the conversion price from an effective $1.30 to $0.375 per share as the company was no longer able to service the debt. The debentures were issued in 1989 to complete the purchase of the LaSalle "10" product line of nail and cuticle treatments, presently the company's sole line of business. Separately, the company announced net sales of $1,013,394 for the year ended April 30, 1992, compared to net sales of $3,705,280 in the prior year. A decline of 73 percent, was due to the sale of the Protex division in September 1991 and the resulting liquidity problems caused by the related antitrust lawsuit. -0- 6/19/92 /CONTACT: Sigfred W. Peck of Allercare, 612-944-0551/ (ALLR) CO: Allercare, Inc. ST: Minnesota IN: MTC SU:
AL -- MN004 -- 1902 06/19/92 11:57 EDT
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|Date:||Jun 19, 1992|
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