Rotonics Manufacturing Inc. announces full conversion of outstanding preferred stock to common stock

Business Wire, Sept 25, 1995

GARDENA, Calif.--(BUSINESS WIRE)--Sept. 25, 1995--Rotonics Manufacturing Inc. (ASE:RMI) Monday announced unanimous approval of both the board of directors and the preferred shareholders to convert all of the company's outstanding shares of 9 percent cumulative preferred stock to shares of the company's common stock.

The board said the decision was based on what they considered to be in the best interest of all shareholders.

The conversion will provide increased equity value per common share, eliminate the necessity to incur additional debt and interest costs to redeem the outstanding preferred, and eliminate future 9 percent dividends to be paid on the preferred while enhancing cash flows to be used for the betterment of the company.

The conversion will be on a 1-for-2 basis. One share of common will be issued for every two shares of preferred outstanding. The conversion will result in the issuance of 1,374,884 new shares of common, increasing the company's total outstanding common shares to approximately 14,155,400 shares.

``Although the conversion will have an initial minimal dilutive effect to earnings per common shareholder, the long-term benefits are unsurpassed as we continue our commitment to provide the best possible return to our shareholders,'' said Sherman McKinniss, chairman and chief executive officer.

Rotonics Manufacturing, with headquarters in Gardena, is a national company that manufactures plastic products for agricultural, commercial, refuse, health-care, marine, medical- waste, pharmaceutical and residential use.

CONTACT: Rotonics Manufacturing Inc., Gardena

Dawn R. Wellmerling, 310/538-4932