Riviera Tool Company Announces Issuance of Preferred Stock And Redemption and Retirement of Common Stock
13 October 1997
Riviera Tool Company Announces Issuance of Preferred Stock And Redemption and Retirement of Common StockGRAND RAPIDS, Mich., Oct. 13 -- Grand Rapids, Michigan-based Riviera Tool Company (Amex: RTC) today announced the completion of a private placement and issuance of 60,200 shares of 8% Convertible Preferred Stock convertible at $6.00 per share. Of the $6,020,000 proceeds from the sale of the 8% Convertible Preferred Stock, $3.0 million will be used to redeem and retire 730,000 common shares (a per share price of $4.11) owned by Motor Wheel Corporation. The remaining proceeds will be used for future capital equipment expenditures. "The completion of the Preferred Stock offering and redemption of the Motor Wheel common shares is consistent with our continuous focus toward increasing shareholder value in that the redemption and retirement of these common shares is accretive to our shareholders," President Kenneth K. Rieth said. "Adding that the remaining proceeds allow us the opportunity to continue to grow our business on an equity basis, rather than incurring additional indebtedness." Riviera designs, develops and manufactures custom large scale metal stamping die systems used in the high speed production of sheet metal stamped parts and assemblies for the automobile industry. Riviera's common stock trades on the American Stock Exchange under the symbol "RTC" and closed Friday, October 10, 1997 at 6 1/8. SOURCE Riviera Tool Company