Magazine article American Banker

Equimark Issues Rights for Purchase of Common Stock at $2.68 a Share

Magazine article American Banker

Equimark Issues Rights for Purchase of Common Stock at $2.68 a Share

Article excerpt

As part of its previously announced program to raise capital, the Equimark Corp. of Pittsburgh has issued to its common-stock holders and certain eligible employees rights that allow them to acquire Equimark shares for $2.68 each.

In registration statements that took effect Monday, Equimark said holders of its common stock on June 10 were issued two rights for each of their shares. Each right will entitle the holder to purchase on share of common stock at $2.68.

Because of the rights offering, the price of Equimark shares was adjusted downward from its 6-1/2 closing price Monday to 4 at opening on Tuesday. The price of each right, which traded separately from the shares, was placed at 1-1/2. The shares traded down an eighth from that adjusted price on Tuesday.

Holders of the shareholder rights may also subscribe for shares that are not subscribed for in the offering. Equimark said more than 10.3 million rights will be available for issuance. The rights can be exercised from June 10 to 5 p.m. EDT on June 28. They will be transferable and will be traded on the New York Stock Exchange.

James D. Lowry, chairman and chief executive officer of Equimark, said Tuesday that Equimark currently has about five million shares outstanding. In addition to the roughly 10 million additional shares that are being issued through this rights offering, a partnership group headed by the chairman will acquire another 10 million.

Also, roughly four million common shares will be issued through such methods as an employee subscription plan. …

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