Invacare (NYSE:IVC) said yesterday that the former chairman & CEO who rescued the company from the doldrums in the 1980s, Malachi Mixon III, is pulling the trigger on the more than 700,000 convertible shares he controls.
The 1-for-1 exchange will take Invacare’s voting power from 40,155,366 votes to 33,820,158 votes, the Elyria, Ohio-based company said.
“The conversion will substantially diminish the significance of the company’s dual class voting structure, as after completion, the holders of the common shares will represent approximately 99.5% of the company’s total outstanding voting power,” Invacare said in a regulatory filing.
Should Mixon elect to sell some or all of his stake it could send IVC share prices down, the company said.
Mixon and a group of investors in 1979 paid $78 million – including Mixon’s $10,000 in life savings at the time – to buy Invacare for $7.8 million from Johnson & Johnson (NYSE:JNJ) subsidiary Technicare unit. Mixon, who had been marketing vice president at Technicare, was named CEO and took the company public in 1984 at $11 per share.
IVC shares were trading at $14.18 apiece today in early trading, up 0.2%.