Modtech converts $7.82 million convertibles, buys back $9.747 million convertibles

By Jennifer Chiou

New York, Nov. 1 - Modtech Holdings, Inc. issued 1 million shares in exchange for $7.82 million of its senior subordinated secured convertible notes and repurchased $9,746,666 of the convertibles for $8 million, according to an 8-K with the Securities and Exchange Commission.

The company entered into the conversion, at a conversion price of $7.82 per share, and repurchase agreement with one noteholder.

According to the filing, the company paid $5 million on Oct. 31 and will fund the remaining $3 million within five business days.

Modtech also agreed to register the 189,189 shares of its common stock issued on May 4 with a partial conversion of the note.

The Perris, Calif.-based designer and manufacturer of modular buildings added that the convertible notes will be canceled.

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