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Subsequent Events
12 Months Ended
Dec. 31, 2012
Subsequent Events  
Subsequent Events

16   Subsequent Events

 

Preferred Stock Dividend

 

On January 11, 2013, the Company’s Board of Directors declared a quarterly cash dividend in the amount of $0.15 per share on the Company’s Preferred Stock with respect to the fourth quarter of 2012. The Company paid the dividend on February 1, 2013 to holders of record of the Preferred Stock as of the close of business on January 22, 3013.

 

The Board considered numerous factors in determining whether to declare the quarterly dividend, including the requisite financial analysis and determination of a surplus. While the Board will analyze the advisability of the declaration of dividends in future quarters, there is no assurance that future quarterly dividends will be declared.

 

Preferred Exchanges

 

During the first quarter of 2013, the Company settled three separate Securities Exchange Agreements with its stockholders pursuant to which the Company agreed to issue 1,513,653 shares of its common stock to the preferred stockholders in exchange for their delivery to the Company of 792,460 shares of the Company’s Convertible Preferred Stock. As the Company issued 1,465,480 shares of common stock in excess of the number of shares the preferred stock was convertible into under the original conversion terms, we anticipate recording deemed dividends in the amount of approximately $8.4 million during the first quarter of 2013. As of a result of these transactions a total of 420,862 shares of Preferred Stock remain outstanding.

 

Stock Purchase Agreement

 

During the first quarter of 2013, the Company sold 650,000 shares of its common stock to Aspire Capital Fund, LLC under the Common Stock Purchase Agreement in consideration for an aggregate proceeds of $3.4 million.