A Medical Device Daily
Laboratory Corporation of America Holdings (LabCorp; Burlington, North Carolina) reported that its zero coupon subordinated liquid yield option notes (LYONS) due 2021 and zero coupon convertible subordinated notes due 2021 may be converted.
LYONs are convertible into common stock of LabCorp at the rate of 13.4108 per $1,000 principal amount at maturity of the LYONs, subject to the terms of the LYONs and the indenture, dated as of Sept. 11, 2001, between LabCorp and The Bank of New York, as trustee and conversion agent.
The zero coupon notes are convertible into cash and common stock of LabCorp, if any, subject to the terms of the zero coupon
In order to exercise the option to convert all or a portion of the LYONs or zero coupon notes, holders must validly surrender them by July 2.
There is $1.07 million aggregate principal amount of LYONs outstanding at March 31, 2006, which upon conversion LabCorp would be required to settle in shares.
LabCorp said that the shares required for settlement of the LYONs and the zero coupon notes are already included in its computation of fully diluted earnings per share.
MRI manufacturer Fonar (Melville, New York) said it has affected a reverse stock split at a ratio of 1:25 of its outstanding common stock and all other classes of its outstanding stock, effective yesterday.
As a result of the hearing held before the NASDAQ Listing Qualifications Panel on Feb. 15, Fonar's request for continued listing on The NASDAQ Stock Market was granted, subject to the condition that on or before May 1, the company must have evidenced a closing bid price of $1 or more for a minimum of 10 consecutive trading days.
Fonar said that the panel's decision was based on its determination that the reverse stock split would likely cure the bid price deficiency and allow it to maintain longer-term compliance.
In other financing news: Synergetics USA (O'Fallon, Missouri) reported that Jerry Malis, its director and chief scientific officer, and Donna Scheller, the wife of Gregg Scheller, its director and CEO, have adopted prearranged stock trading plans allowing them to sell a portion of their company stock over time as part of their tax and estate planning.
Synergetics designs devices used in ophthalmic surgery and neurosurgery and other healthcare applications.