Nyer Medical acquires minority interest in pharmacy chain subsidiary

As consideration for the minority interest, the former minority shareholders has received a cash payment of $1.75 million, convertible notes totaling $1.5 million bearing interest at 8% maturing in three-years, a note for $350,000 bearing interest at 7% maturing in five-years and newly issued class B-2 preferred stock with a mandatory conversion feature in three years and possessing of four million voting shares.

In contemporaneous transactions, the former minority shareholders acquired 597,826 shares of the company’s common stock from Nyle International for $1.1 million while the company acquired all of its outstanding shares of Class A and B preferred stock in exchange for a $400,000 promissory note bearing interest at a rate of 7% per annum maturing in five years. The company immediately retired the preferred shares. The pharmacy chain’s primary supplier funded the cash portion of the transaction through an extension of payment terms.