Digirad issued approximately 1.6 million shares of its newly authorized 10.0% Series A cumulative perpetual preferred stock valued at $10 per share in exchange for all of the outstanding shares of ATRM’s common and preferred stock. ATRM will deregister and delist its common stock and ATRM will continue as a direct, wholly-owned subsidiary of Digirad, according to a news release.
Digirad also completed a $3 million private placement of 300,000 shares of its preferred stock to Lone Star Value Investors at $10 per share. The company said it intends to use the offering’s proceeds to repay debt owed by a wholly-owned subsidiary of ATRM.
Digirad said its preferred stock would begin trading today on the Nasdaq Global Market under the ticker symbol DRADP.
DRAD shares closed down 1.32% at $4.48.