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Note 9 - Common Stock and Class B Common Stock
 12 Months Ended
Sep. 29, 2019
Notes to Financial Statements  
Schedule of Stock by Class [Table Text Block]
9
     COMMON STOCK AND CLASS B COMMON STOCK
 
Common Stock
 
The par value of our Common Stock was changed from
$2.00
per share to
$0.01
per share effective
January 30, 2012.
Holders of our previous
2
nd
lien agreement shared in the issuance of
6,743,640
shares of our Common Stock, an amount equal to
13%
of outstanding shares on a pro forma basis as of
January 30, 2012.
 
In connection with the currently outstanding
2nd
Lien Term Loan, we entered into the Warrant Agreement. Under the Warrant Agreement, certain affiliates or designees of the
2nd
Lien Lenders received on
March 
31,
2014
their pro rata share of Warrants to purchase, in cash,
6,000,000
shares of Common Stock, subject to adjustment pursuant to anti-dilution provisions. The Warrants represent, when fully exercised, approximately
10.1%
of shares of Common Stock outstanding at
March 30, 2014
on a fully diluted basis. The exercise price of the Warrants is
$4.19
per share.
 
The Warrant Agreement contains a cash settlement provision in the event of a change of control prior to
March 31, 2018,
as well as other provisions requiring the Warrants be measured at fair value and classified as warrants and other liabilities in our Consolidated Balance Sheets. We re-measure the liability to fair value each reporting period, with changes reported in other non-operating income (expense). The initial fair value of the Warrants was
$16,930,000.
At
September 29, 2019
, the fair value of the Warrants is $
1,195,000
.
 
In connection with the issuance of the Warrants, we entered into the Registration Rights Agreement. The Registration Rights Agreement requires, among other matters, that we use our commercially reasonable efforts to file and maintain the effectiveness for certain specified periods of a shelf registration statement covering the shares of Common Stock upon exercise of the Warrants.
 
Class B Common Stock
 
In
1986,
one
share of Class B Common Stock was issued as a dividend for each share of Common Stock held by stockholders of record at the time. The transfer of Class B Common Stock was restricted. As originally anticipated, the number of outstanding Class B shares decreased over time through trading and reached the sunset level of
5,600,000
shares in
March 2011.
In
March 2011,
in accordance with the sunset provisions established in
1986,
we effected conversion of all outstanding shares of Class B Common Stock to Common Stock. As a result, all stockholders have
one
vote per share on all future matters. Class B shares formerly had
ten
votes per share.