QMRK - QualMark Corporation Announces Conversion of the Remaining Outstanding Preferred Shares into Common Shares
Wednesday August 30, 3:01 pm ET
DENVER--(BUSINESS WIRE)--Aug. 30, 2006--QualMark Corporation (OTCBB: QMRK - News), a world leader in designing, manufacturing and marketing HALT (Highly Accelerated Life Testing), HASS (Highly Accelerated Stress Screening) and electro-dynamic systems, today announced the conversion of all of the outstanding Series C preferred shares into common shares, which eliminates all outstanding preferred stock on the QualMark balance sheet.
Upon conversion of the Series C preferred shares, QualMark's outstanding common shares will increase to approximately 8.8 million and stockholders equity will increase to approximately $6 million. The conversion of the Series C preferred shares will eliminate the preferred stockholder's right to receive a preferential distribution and cumulative dividend. The conversion also eliminates the preferred stockholder's right to redeem the preferred shares, which would have created an additional debt overhang to the Company.
Charles Johnston, QualMark's President and CEO, stated: "This event follows the conversion of the Series B preferred shares that occurred two weeks prior and completely eliminates all outstanding preferred stock on the QualMark balance sheet. The conversion will result in a simpler equity structure. It also eliminates the dilution and preferred dividend cost to the Company, as well as the debt overhang that previously existed. The conversion of the preferred shares propels the Company one step closer to meeting listing requirements of a major exchange."
James Roser, Manager of the General Partner of The Roser Partnership III, SBIC LP and sole holder of the Series C preferred shares, stated, "Our decision to convert the Series C preferred shares is attributable to our continued commitment to help the Company move forward and attain their strategic goals." Roser continued, "Our intent is to support and help build QualMark into the world-class organization that we feel it can be."
QualMark Corporation, headquartered in Denver, Colorado, is the leader in designing, marketing, and manufacturing accelerated life-testing systems (HALT and HASS), providing the world's largest corporations with solutions that improve product reliability and allow them to get to market faster. The Company has installed more than 700 of its proprietary testing systems in 30 countries. The Company operates and partners with ten testing facilities worldwide.
The Company also offers electro-dynamic vibration solutions through its subsidiary, Ling Electronics.
Ling Electronics, headquartered in West Haven, Connecticut, is the leader in supplying electro-dynamic systems, components, and service to the worldwide vibration test equipment market.
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