EPIC to redeem outstanding 5% series A convertible preferred stock

By Sarah Lizee

Olympia, Wash., Nov. 9 – EPIC Corp. said it plans to redeem all 2,277,466 shares of its issued and outstanding 5% series A convertible preferred stock to resolve an issue with the conversion provision.

The convertible preferred stock will be redeemed on Nov. 30 on a one share of common for one share of preferred stock basis, according to a press release.

The company said it is “in the process of reorganizing its business and finds it necessary to deal with the conversion provision” of the convertible preferred stock.

“There has never been and there may never have been a stable and active trading market in the company’s common stock from which the company can determine an effective VWAP price to calculate the number of common shares that each share of preferred stock can be converted into,” the company said in the release.

“The conversion provision is unworkable, and no market has ever been made in the preferred stock and it has no market value.”

Holders from Aug. 31, 2015 to Nov. 6, have received 3,105,985 shares of the company’s common stock in payment of the convertible preferred stock quarterly dividends, which is 572,090 shares of common stock less than the total of 3,678,075 shares of common stock exchanged for the 2,277,466 shares of convertible preferred stock.

The redemption provides holders with 1,705,376 more shares of common stock than the shares they exchanged for the convertible preferred stock.

EPIC is an Austin, Texas, special-purpose financial services company focused on health care and consumer product companies.

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