CompuMed Announces Redemption Notice for Class A and Class B Preferred Stock

LOS ANGELES, CA / ACCESSWIRE / April 12, 2018 / CompuMed, Inc. CMPD, a leader in providing diagnostic telemedicine, announced today that it is redeeming the 8,400 outstanding shares of its Class A $3.50 Cumulative Convertible Preferred Stock and the 300 outstanding shares of its Class B $3.50 Convertible Preferred Stock.

The Company today mailed redemption notices to holders of record of each of these two classes of preferred stock. If holders of record transferred shares to other persons without notice to the Company, the Company requests that both the transferor and the transferee contact the Company as soon as possible. All holders (whether of record or otherwise) will be required to provide either the original stock certificate or an affidavit of loss or damage to same to receive redemption payments.

The effective date of redemption is May 15, 2018.

Series A Preferred Shares

The redemption rights of the Company are set forth in the Certificate of Designation of the Class A $3.50 Cumulative Convertible Preferred Stock dated August 10, 1992. The redemption price, as set forth in the Certificate of Designations, is $3.85 per share.

CompuMed paid dividends on the Class A shares through 2011. Class A stockholders are entitled to annual dividends of $0.35 per share thereafter. Since dividends are payable quarterly, dividends for seven and one quarter years have accumulated but not yet been paid. Each Series A share is therefore entitled to a dividend payment of $2.54, or 7.25 times $0.35.

Each Class A share is being redeemed for $6.39, or the sum of the redemption price of $3.85 and $2.54 for accumulated but unpaid dividends.

Class A shares are convertible into common stock. The Certificate of Designations provides that each Class A share is convertible into 5 commons shares. However, this figure was reduced to 0.50 common shares effective October 7, 1994 as the result of a ten for one reverse stock split. Given the current share price, such a conversion would not make sense and the Company does not anticipate that anyone will ask to convert.

The Company anticipates paying $53,676 for the 8,400 outstanding shares of Class A $3.50 Cumulative Convertible Preferred Stock.

Series B Preferred Shares:

The redemption rights of the Company are set forth in the Certificate of Designation of the Class B $3.50 Convertible Preferred Stock dated October 17, 1994. The redemption price, as set forth in the Certificate of Designations, is $3.85 per share.

Class B shares do not accrue cumulative dividends and no dividend payments are in arrears.

Class B shares are convertible into common stock. The Certificate of Designations provides that each Class B share is convertible into 10 commons shares. At the current share price of around 11 cents per share, such a conversion would not make sense and the Company does not anticipate that anyone will ask to convert.

The Company anticipates paying $1,155 for the 300 outstanding shares of Class B $3.50 Convertible Preferred Stock.

About CompuMed, Inc.

CompuMed, Inc. CMPD Diagnostic Telemedicine services provide patients with the highest level of clinical care at reduced costs. Its telecardiology and teleradiology offerings provide real-time access to U.S. Board-Certified specialists through cloud-based technology and integrated medical devices to medical facilities anywhere in the world. The company has been in business over 26 years and services over 1,000 clinical settings. CompuMed is headquartered in Los Angeles, CA. For inquires, contact Investor Relations 310-258-5000 or www.compumedinc.com.

Forward-Looking Statements

Statements contained in this report, such as statements about revenue, operations, and earnings growth and other financial results are forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements including statements concerning the Company's plans, objectives, expectations and intentions are based largely on management's expectations and are subject to and qualified by risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These statements are subject to uncertainties and risks including, without limitation, product and service demand and acceptance, changes in technology, ability to raise capital, the availability of appropriate acquisition candidates and/or business partnerships, economic conditions, the impact of competition and pricing, capacity and supply constraints or difficulties, government regulation and other risks identified in the Company's filings with the Securities and Exchange Commission and OTC Pink operated by OTCMarkets. All such forward-looking statements are expressly qualified by these cautionary statements. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect events, conditions or circumstances on which any such statement is based after the date hereof, except as required by law.

SOURCE: CompuMed, Inc.