eAutoclaims Announces Restructuring of Outstanding Convertible Preferred Stock
November 18 2003 - 4:15PM
PR Newswire (US)
eAutoclaims Announces Restructuring of Outstanding Convertible
Preferred Stock OLDSMAR, Fla., Nov. 18 /PRNewswire-FirstCall/ --
eAutoclaims (BULLETIN BOARD: EACC) announced the restructuring of
their outstanding convertible preferred stock with Governors Road
LLC. The new agreement changes the formula used to compute the
conversion of eAutoclaims' preferred shares to common shares. The
agreement also establishes a minimum conversion price, which was
not part of the original agreement and creates a maximum number of
common shares that are allowed to be issued upon conversion of the
preferred shares. The new agreement enables the company to
liquidate the preferred shares over a 20- to 30-month period by
purchasing a small number of preferred share units each month.
Should the company choose not to act on its rights to purchase the
units, the company can arrange block trades of a predetermined
number of converted common shares before the holder is permitted to
sell those shares. If the company exercises either of these
options, the agreement requires the holder to remain in a lock-up
position and forbids the selling of any additional shares. "This
new agreement allows us to minimize the effects of newly issued
common shares hitting the open market from our remaining
outstanding preferred shares," said Eric Seidel, President/CEO.
"The revised terms help protect the market value of our stock. It
also makes future equity deals more attractive." About eAutoclaims
eAutoclaims (OTC:EACC) (BULLETIN BOARD: EACC) is a business
services company that provides the insurance industry with claims
management services through both ASP and integrated outsourcing
solutions. The Company's clients are insurance companies, fleet
management companies and insurance services companies. eAutoclaims'
solutions streamline the claims handling process, decreasing the
overall time and cost required to process a collision claim and
reducing average paid losses for its clients. The Company handles
repair estimates, repair audits, and claims systems administration
services, for automobile claims that are processed and tracked via
the eAutoclaims Web-based platform and network of service
providers. This announcement contains "forward-looking statements."
Words such as "anticipate", "believe", "estimate", "expect" and
other similar expressions as they relate to the Company and its
management are intended to identify such forward-looking
statements. Although the Company and its management believe that
the statements contained in this announcement are reasonable, it
can give no assurances that such statements will prove correct.
Factors that could affect the occurrence of events or results
discussed herein are included with those mentioned in the Company's
filings with the Securities and Exchange Commission. DATASOURCE:
eAutoclaims, Inc. CONTACT: Jeff Dickson, Chairman of eAutoclaims,
+1-813-749-1020, Ext. 202, or email,
Copyright