NIXA, Mo.-Applied Cellular Technology Inc. announced it completed the conversion of $4.8 million in redeemable preferred shares.
In consideration, Applied Cellular will issue 650,000 shares of restricted common stock to a co-founder of ATI Communications, one of Applied Cellular’s subsidiaries.
Applied Cellular issued the redeemable preferred shares in the September 1996 purchase of Advanced Telecom Holding Inc.
“This transaction speaks very favorably for Applied Cellular in two different ways-it strengthens our balance sheet and speaks favorably for the company’s prospects,” said Richard J. Sullivan, chief executive officer of Applied Cellular.
“The conversion is similar to the one enacted on July 15 with the other cofounder of ATI and effectively retires all the redeemable preferred shares issued in connection with our September 1996 acquisition of ATI. We now enter the fourth quarter with an extremely strong balance sheet containing less than $1 million in redeemable preferred stock. We believe the election to convert instead of redeem was made due to Applied’s excellent future prospects in an industry which is experiencing phenomenal growth.”
ATI specializes in providing complete telephone systems and solutions for its customers.
