Quarterly report pursuant to Section 13 or 15(d)

Equity Transactions

Equity Transactions
3 Months Ended
Mar. 31, 2016
Equity Transactions [Abstract]  
Equity Transactions

Note 11 - Equity Transactions

10% Series A Cumulative Preferred Stock (“Preferred Stock”)

Holders of the Company’s Preferred Stock are entitled to receive, when, as and if declared by our Board of Directors, out of funds legally available for the payment of dividends, cumulative cash dividends at a rate of 10.0% per annum of the $50.00 liquidation preference per share (equivalent to $5.00 per annum per share). Dividends are payable quarterly in arrears on the last day of each March, June, September and December when, as and if declared by our Board of Directors. Preferred Stock dividends were $1,824 and $1,974 for the three months ended March 31, 2016 and 2015, respectively.

The Preferred Stock has no stated maturity and is not subject to any sinking fund or other mandatory redemption. On or after May 30, 2018, the Company may, at its option, redeem the Preferred Stock, in whole or in part, by paying $50.00 per share in cash, plus any accrued and unpaid dividends to the redemption date.

Following a change of control in which the Company or the acquirer no longer have a class of common securities listed on a national exchange, the Company will have the option to redeem the Preferred Stock, in whole but not in part for $50.00 per share in cash, plus accrued and unpaid dividends (whether or not declared), to the redemption date. If the Company does not exercise its option to redeem the Preferred Stock upon such change of control, the holders of the Preferred Stock have the option to convert the Preferred Stock into a number of shares of the Company’s common stock based on the value of the common stock on the date of the change of control as determined under the certificate of designations for the Preferred Stock. If the change of control occurred on March 31, 2016, and the Company did not exercise its right to redeem the Preferred Stock, using the closing price of $8.85 as the value of a share of common stock, each share of Preferred Stock would be convertible into approximately 5.6 shares of common stock. If the Company exercises its redemption rights relating to shares of Preferred Stock, the holders of Preferred Stock will not have the conversion right described above.

On February 4, 2016, the Company exchanged a total of 120,000 shares of Preferred Stock for 719,000 shares of common stock. As of March 31, 2016, the Company had 1,458,948 shares of its Preferred Stock issued and outstanding.

Common stock  

On March 9, 2016, the Company completed an underwritten public offering of 15,250,000 shares of its common stock at $6.50 per share, before underwriting discounts. The Company received net proceeds of approximately $94,949 after the underwriting discounts and estimated offering costs.