As of December 31, 2004, there were 315,890 shares of Series "C" Preferred Stock issued and outstanding representing approximately $31.6 million of stated value. In a series of stages beginning March 30, 2005, the Company called all of such shares for redemption. As of April 20, 2005, the Company had received notification from holders of all of such shares of their election to convert their holdings into shares of the Company's Common Stock. Accordingly, the Company will issue approximately 7.1 million shares of its Common Stock for the shares of Series "C" Preferred Stock converted during 2005. In addition, a subsequent cash payment representing accrued and unpaid dividends on the converted Series "C" Preferred Stock will be remitted by the Company following surrender of the shares.
As a result of the conversions, the Company's capital structure has been further simplified and the Company will realize an annual cash savings of approximately $2.6 million on the Series "C" Preferred Stock dividends, based on the number of such shares outstanding at December 31, 2004.
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