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PARK CITY, Utah, March 13, 2013 (GLOBE NEWSWIRE) -- Park City Group (NYSE MKT:PCYG), a Software-as-a-Service (SaaS) provider of unique supply chain solutions for retailers and their suppliers, today announced that it will redeem all of its issued and outstanding shares of Series A Convertible Preferred Stock on April 15, 2013.
The Series A Convertible Preferred Stock will be redeemed at a redemption price of $10.00 per share in cash, less any applicable tax withholding as may be required by law. Each share of Series A Convertible Preferred Stock is convertible into 3.33 shares of common stock. Holders of the Series A Preferred may convert their shares of Series A Preferred into shares of Park City Group's common stock until the close of business (5:00 pm Mountain Daylight Time) on April 15, 2013. For more information, holders of the Series A Preferred may contact Ed Clissold, the Company's Chief Financial Officer at (435) 645-2200.
The Company also announced that it has entered into agreements with certain accredited investors to purchase an aggregate of 600,000 shares of common stock of the Company at a price of $3.50 per share, along with warrants to purchase an additional 200,000 shares at an exercise price of $3.50 per share. Gross proceeds of $2.1 million from this financing, together with available cash, borrowings, and additional funding to be provided by the Company's directors are expected to meet the cash required to redeem the Series A Convertible Preferred Stock.
Randall K. Fields, Chairman and CEO of Park City Group said, "We believe the redemption of the Series A Preferred will be accretive to shareholder value by simplifying our capital structure and reducing our preferred dividend payments by approximately $650,000 annually, or $0.04 per share. These savings, combined with the anticipated continued acceleration of our revenue and earnings, position us to deliver record results during fiscal 2013."