Business
Zomedica Retires Preferred Shares
Zomedica Retires Preferred Shares.
About this update from Zomedica Corp.
[{"type":"text","content":"\n ANN ARBOR, Mich., March 08, 2021 (GLOBE NEWSWIRE) -- Zomedica Corp. (NYSE American: ZOM) (“Zomedica” or the “Company”), a veterinary health company creating point-of-care diagnostics products for dogs and cats, today announced that it has effected the exchange of all of its outstanding Series 1 Preferred Shares for its common shares and that it continues to progress with its planned commercialization of its TRUFORMA® platform. Effective March 7, 2021, Zomedica completed the exchange of all 12 of its outstanding Series 1 Preferred Shares, stated value $1.0 million per share, (the “Preferred Shares”) for 24,719,101 common shares of the Company, equivalent to $44 million based on a $1.78 per share closing price of the common shares on March 5, 2021. Robert Cohen, Chief Executive Officer of Zomedica, commented: “As you know, since our fundraising round in July of 2020, we have wanted to rationalize the Preferred Shares. Due to the terms of these shares, they are considered to be a detriment to Zomedica, its future growth, and the interests of our common shareholders. For historical reasons, although the Company received $12 million in exchange for the Preferred Shares, the Preferred Shares were entitled to a $108 million liquidation preference and a 9% royalty on the net sales of Zomedica and its affiliates. The exchange of the Preferred Shares for common shares eliminates this potential detrimental effect, results in a “clean” balance sheet for the Company, and removes what was, in our opinion, a potential overhang on the common shareholders. We are appreciative that Wickfield Bridge Fund LLC, holders of the Preferred Shares, agreed with us that the elimination of the punitive terms of the Preferred Shares was in the best interests of all shareholders.” In further news, the first group of direct Zomedica field personnel have completed their training in anticipation of the commercial release of TRUFORMA. Sales representatives of Miller Veterinary Supply, Zomedica’s distribution partner, also have completed their initial training program. Zomedica developed and implemented the training program to deliver a transformational learning program to its sales team through a defined process of providing a well-defined strategy, comprehensive disease state knowledge, an...