Thomas Equipment says dividend, registration penalties on $25 million PIPE will be paid in stock

By Sheri Kasprzak

New York, June 5 - Thomas Equipment, Inc. said the dividend arrears, the June dividend payment and registration penalties due on a $25 million private placement completed in April 2005 will be paid for in stock.

The company owes certain holders of the series A preferreds issued in the PIPE dividends totaling $200,575.34 and is also obligated to pay a penalty of $1,096,774. The effectiveness of the registration statement filed with the Securities and Exchange Commission on the preferreds was made effective late.

The company also owes dividends in arrears totaling $748,520.55.

As part of the agreement, the holders of the preferreds received warrants for 1,065,558 shares, exercisable at $3.00 each for five years.

The preferreds were issued on April 19, pay annual dividends at 5% and are convertible at $3.00 each.

Based in Milwaukee, Thomas manufactures skid steer and mini-skid steer loaders.

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