LOJACK ANNOUNCES PRIVATE PLACEMENT OF COMMON STOCK AND PLAN TO CONVERT SUBORDINATED DEBT TO PREFERRED STOCK
LOJACK ANNOUNCES PRIVATE PLACEMENT OF COMMON STOCK
AND PLAN TO CONVERT SUBORDINATED DEBT TO PREFERRED STOCK
NEEDHAM, Mass., Nov. 18 /PRNewswire/ -- LoJack Corporation (NASDAQ: LOJNC; Boston: LOJ.B) announced today that it has completed the private placement to institutions of units consisting of an aggregate of 773,225 shares of common stock and warrants to purchase 1,420,800 shares of LoJack common stock at an exercise price of $3 a share. This will result in aggregate proceeds to the company of $2,368,000 exclusive of any proceeds from the exercise of the warrants.
In a separate transaction, holders of $11,840,000 (or 96.5 percent) of LoJack's $12,265,000 10-percent convertible debentures have agreed in principle to convert their debentures into $11,840,000 of LoJack non-redeemable 10-percent cumulative convertible preferred stock.
In making the announcement, C. Michael Daley, president, said, "The effect of this transaction, together with the company's available line of credit which is unused as of this date, will be to provide LoJack with sufficient capital resources to continue to aggressively market the company's products in its existing markets, as well as to continue to actively pursue the company's expansion strategies. In addition, this transaction will put the company in compliance with all of NASDAQ's listing requirements. As a result the company expects to be listed on the NASDAQ system without exception after the completion of these transactions."
/CONTACT: Joseph F. Abely of LoJack Corporation, 617-444-4900; or John Swanson of Swanson Communications, Inc., 212-683-4890, for LoJack Corporation/
(LOJN) CO: LoJack Corporation ST: Massachusetts IN: AUT SU: ML -- NYON3 -- 1213 11/18/91 08:03 EST