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ELECTROMEDICS ANNOUNCES CONVERSION OF $8 MILLION IN DEBENTURES TO COMMON STOCK

 ELECTROMEDICS ANNOUNCES CONVERSION OF $8 MILLION
 IN DEBENTURES TO COMMON STOCK
 ENGLEWOOD, Colo., Aug. 25 /PRNewswire/ -- Electromedics Inc. (NASDAQ: ELMD) today announced that it has filed to register 2,064,516 shares of common stock with the Securities and Exchange Commission (SEC). The stock will be issued to two investment funds managed by Fidelity Management & Research Co. and Fidelity Management Trust Co. which are expected to convert $8 million principal amount of Electromedics' 10 percent Convertible Subordinated Debentures held by them, for the shares in accordance with the terms of the debentures. According to the registration statement filed with the SEC, Fidelity has advised Electromedics that they have no present intention to sell the shares; however, they may sell such shares at any time or periodically. Electromedics has agreed to maintain a current registration statement for the shares for up to five years. After the shares are issued the Fidelity funds will own 15 percent of Electromedics' outstanding shares.
 "We are pleased that a respected investment manager such as Fidelity would choose to continue their long-term investment in Electromedics," said F. James Lynch, chairman and chief executive officer of Electromedics. "The conversion will save the company $800,000 annually in interest expense and, despite the additional shares, should benefit our earnings per share."
 "Our balance sheet will be considerably strengthened as a result of this conversion, increasing our shareholders' equity to nearly $30 million. Our debt to equity ratio will improve to below .34 to 1," according to Richard B. Carlock, vice president and chief financial officer of Electromedics. "Upon conversion, there will be approximately 13.7 million shares of common stock issued and outstanding."
 Electromedics is a leader in the autotransfusion segment of the blood processing market with over one-third of the United States autotransfusion market. The company also designs and manufactures blood conservation devices and related disposable devices for use in cardiovascular, orthopedic and other medium/high blood loss surgeries.
 -0- 8/25/92
 /CONTACT: F. James Lynch or Richard B. Carlock of Electromedics, 303-790-8700; or Scott Brooks or Wayne Brown of Carl Thompson Associates, 303-494-5472, for Electromedics/
 (ELMD) CO: Electromedics Inc. ST: Colorado IN: MTC SU:


BB -- DV001 -- 2950 08/25/92 10:27 EDT
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Publication:PR Newswire
Date:Aug 25, 1992
Words:368
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