Emmis Sets Terms For Mandatory Conversion Of Preferred Stock To Common Shares
February 19, 2016 at 5:12 AM (PT)
EMMIS COMMUNICATIONS CORP. has amended its bylaws to convert its 6.25% Series A Non-Cumulative Convertible Preferred Stock into Class A Common Stock at a ratio of 2.80 shares of common stock for each share of preferred stock when the preferred stock is delisted from NASDAQ.
Preferred Stock holders can voluntarily convert their shares at any time before the mandatory conversion, which would take place five business days after delisting. Any accumulated but undeclared dividends on the Preferred Stock will be automatically canceled upon conversion.
Also, the company signed Pres./Publishing Division, Pres./CEO of DIGONEX TECHNOLOGIES, INC., and Chief Strategy Officer GREGORY T. LOEWEN to a new three-year contract at a base salary of $435,000 for the first year, subject to a previously-agreed-upon 5% reduction for calendar 2016, with annual merit increases in accord with other EMMIS employees and an annual incentive target of 60% of the base, paid in cash or common stock. LOEWEN is also getting stock options, a car allowance of $1,000 per month, and $5,000 life and disability insurance premium reimbursement and estate planning costs for each year.