Rheometric Scientific Announces Cash Infusion
August 20, 2002
Rheometric Scientific recently announced that it has entered into an agreement with Andlinger Capital XXVI LLC, the company's principal stockholder, pursuant to which Andlinger Capital would make an immediate preferred stock investment of $1,500,000, with the right, subject to board approval, to invest up to an additional $500,000. The newly created Series B Preferred Stock would not carry a current dividend, but would be subject to redemption at the option of the company, or upon a change in control, or the occurrence of certain other major events at a redemption price equal to the original Series B issue price times 12% per annum. The company has been subject to a requirement under its senior credit agreement with PNC Bank to obtain a cash infusion of at least $1,000,000 in the form of equity. It is intended that this transaction would satisfy such requirement.