Business
Yunhong CTI Ltd. Announces $1.5 Million Private Placement of Series B Redeemable Convertible Preferred Stock
LAKE BARRINGTON, IL / ACCESSWIRE / December 10, 2020 / Yunhong CTI Ltd. (NASDAQ:CTIB) ("Yunhong CTI" or the "Company"), a leading manufacturer of custom film
About this update from Yunhong Green Cti Ltd.
[{"type":"text","content":"LAKE BARRINGTON, IL / ACCESSWIRE / December 10, 2020 / Yunhong CTI Ltd. (NASDAQ:CTIB) (\"Yunhong CTI\" or the \"Company\"), a leading manufacturer of custom film products, foil and latex novelty balloons, and flexible packaging products, announced that it has entered into an stock purchase agreement with an investor, whereby the investor made a $1.5 million strategic investment in Yunhong CTI in exchange for 170,000 shares of the Company's Redeemable Series B Convertible Preferred Stock.\"Earlier this year, we announced several initiatives to reduce costs and improve our cash flow to further enhance shareholder value. This equity investment is an important step that will enhance our ability to invest in key customer relationships and support our operations. In summary, we view this investment as a strong vote of confidence in our overall strategy to simplify our business and focus on profitable, growth-oriented product lines and prioritize investments that enhance our manufacturing capabilities to better pursue attractive growth opportunities,\" said Jennifer Connerty, Chief Financial Officer of Yunhong CTI.Pursuant to the stock purchase agreement, the investor purchased 170,000 shares of the Company's Series B Redeemable Convertible Preferred Stock at a purchase price of $10.00 per share for an aggregate purchase price of $1.5 million. The preferred stock includes quarterly dividends at the annual rate of 8%. Such dividends may be paid in cash or in shares of common stock at the Company's discretion. The Series B Redeemable Convertible Preferred Stock is redeemable on certain terms and conditions on or after November 30, 2021, and subject to certain other rights and obligations. Additional information regarding the investment is included in a Form 8-K filed by the Company with the Securities and Exchange Commission on November 25, 2020.The securities to be sold by Yunhong CTI pursuant to the transactions described above have not been registered under the Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States absent registration with the U.S. Securities and Exchange Commission or an applicable exemption from such registration requirements.This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor will there be any sale of the...