WEST PALM BEACH, Fla., Sept. 26 /PRNewswire-FirstCall/ -- HearUSA, Inc. announced today that it has completed the redemption of all the shares of its 1998-E Series Convertible Preferred Stock in the amount of $4,563,000 plus accrued and unpaid dividends and a premium of 8% for a total of $4,956,376. The premium of 8% ($365,000) is payable at the earliest of the redemption or the maturity of the instrument. The Company funded the redemption with proceeds from its recently completed $5.5 million private placement of 7% Subordinated Notes and Warrants.
“Redemption of the 1998-E Series Preferred Stock removes the potential for significant dilution of our common stockholders,” said Paul A. Brown, M.D., founder and Chairman. “Of the $365,000 redemption premium, approximately $231,000 had been accrued as of the date of the payment. An additional charge of approximately $134,000, the unaccrued portion of the premium, will be expensed during the third quarter of 2005,” Dr. Brown added.
About HearUSA
HearUSA provides hearing care to patients whose health insurance and managed care organizations have contracted with the company for such care and to retail “self-pay” patients. The company-owned centers are located in California, Florida, New York, New Jersey, Massachusetts, Ohio, Michigan, Missouri and the province of Ontario Canada. In addition, the company has a network of approximately 1,400 affiliated audiologists in 49 states. For further information, click on “investor information” at HearUSA’s website http://www.hearusa.com .
HearUSA, Inc.
CONTACT: Paul A. Brown, M.D., Chairman, of HearUSA, +1-561-478-8770, ext.123; or Michael Arneth or Brien Gately of the Investor Relations Company,+1-847-296-4200
Web site: http://www.hearusa.com/