MONTVALE, N.J.-Geotek Communications Inc. announced investors holding its Series O and Q floating conversion rate preferred shares have agreed to exchange them into new Series R and S fixed-price preferred shares.
The restructuring is intended to reduce uncertainty about the potentially dilutive effect of the approximately $47.5 million remaining Series O and Q shares in the company’s capital structure, Geotek said.
Shareholders will convert about $12.9 million of Series O and Q preferred shares into common stock and exchange a total of $22.1 million for the Series R and S shares.
The remaining $12.5 million will continue to be subject to a floating conversion rate and may be converted into common stock during the next six months.
As of Jan. 26, Geotek had about 88.6 million common shares outstanding.
