A Moyes Company Makes Equity Investment in Simon Transportation
Oct 11, 2001 12:00 PM, Gary MacklinA corporation controlled by Jerry Moyes has agreed to purchase approximately $2.1 million of Series II preferred stock issued by Simon Transportation. The investment would be in addition to a $6.7 million investment in Series I preferred stock and Series I preferred stock warrants previously purchased by a partnership controlled by the family of Jerry Moyes on June 30, 2001.
A corporation controlled by Jerry Moyes, chairman of the Simon board, made advances to the company for equipment purchases and general corporate purposes during the September quarter. That corporation agreed to convert the approximately $2.1 million of outstanding advances into equity in the form of Series II preferred stock and Series II preferred stock warrants. The 130,000 shares of preferred stock were priced at $16 per share, and each share is convertible into ten shares of Class A Common Stock. The purchase agreement also includes warrants to purchase 130,000 shares of preferred stock at $16 per share. The preferred stock purchase price is equivalent on a converted basis to the $1.60 closing price of Simon’s Class A common stock on September 28. The issuance of the Series II preferred stock, Series II preferred stock warrants, and certain anti-dilution provisions of the Series I preferred stock warrants from the June 30 transaction are subject to stockholder approval.