Avatech Solutions

Avatech Solutions Completes Redemption of Preferred Stock

Thursday 01 April 2010

 
FOR IMMEDIATE RELEASE
 
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Strengthens Balance Sheet; Increases Cash Flows
 
BALTIMORE – April 1, 2010 – Avatech Solutions, Inc. (OTCBB: AVSO), the nationwide technology experts for design, engineering, and facilities management, announced that on March 31, 2010 it completed the redemption of its Series F Convertible Preferred Stock offering (“Series F”).
 
In June 2006, Avatech issued $4 million of the preferred stock as an integral part of the funding of an acquisition. The Series F issuance provided for a 10% dividend payment, 800,000 common stock warrants and could have been converted into 2,055,000 shares of common stock. Included in the final redemption payment was also the final dividend payment due under the issuance and with the redemption completed, the conversion rights no longer exist. The common stock warrants have an exercise price of $2.30 per share and will expire on June 12, 2010. 
 
“This continues the strengthening of the Company’s balance sheet and it is particularly noteworthy that the redemption took place over the last two years during the economic turmoil that racked much of our country,” commented President and Chief Financial Officer Lawrence Rychlak. “By closely managing our operations and financial position, we successfully met all of the redemption and dividend provisions of this preferred stock offering without incurring any other financial obligation. 
 
“By fully redeeming this offering, we have reduced our future dividend payments, thus increasing future cash flows and we have simplified our equity structure. Combined with our profitable operating results, our strong balance sheet and cash flows positions us well for our future strategic endeavors,” concluded Mr. Rychlak. 
 
About Avatech Solutions
 
Avatech Solutions, Inc. (OTCBB: AVSO) is America’s leading professional services company for design and engineering technologies. Avatech advances the way organizations design, develop, and manage building, infrastructure, and manufacturing projects. Fortune 500 and Engineering News Record's Top 100 companies work with Avatech to gain a competitive advantage through technology consulting, implementation, training, and support services. One of the world’s largest integrators of Autodesk software, Avatech designs systems that accelerate innovation while improving quality and profitability. For more information please visit www.avatech.com.
 
Forward-looking Statement
This press release contains forward-looking statements about the expectations, beliefs, plans, intentions, and strategies of Avatech Solutions, Inc. There are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. Statements that are not historical in nature, including those that include the words “goal,” “expect,” “anticipate,” “estimate,” “should,” “believe,” “intend,” and similar expressions, are based on current expectations, estimates and projections about, among other things, the industry and the markets in which Avatech operates, and they are not guarantees of future performance. Whether actual results will conform to expectations and predictions is subject to known and unknown risks and uncertainties, including risks and uncertainties discussed in this report; general economic, market, or business conditions; changes in interest rates, and demand for our products and services; changes in our competitive position or competitive actions by other companies; the ability to manage growth; changes in laws or regulations or policies of federal and state regulators and agencies; and other circumstances beyond our control. Consequently, all of the forward-looking statements made in this document are qualified by these cautionary statements, and there can be no assurance that the actual results anticipated will be realized, or, if substantially realized, will have the expected consequences on our business or operations.
 
 
 
Company Contact                                                                     Investor Relations Contact
Jean Schaeffer                                                                            Todd Fromer / Garth Russell
Avatech Solutions, Inc.                                                                KCSA Strategic Communications
Phone +1 (410) 581-8080                                                             Phone +1 (212) 896-1215 / 1250
Fax +1 (410) 753-1591                                                                 tfromer@kcsa.com /
jean.schaeffer@avatech.com                                                        grussell@kcsa.com