Redeems all outstanding shares of its Series E 7% Senior Convertible Preferred Stock
On 10/10/12, NBS gave notice to its Series E Preferred Stockholders that it is redeeming all of the outstanding shares of Series E Preferred Stock for an aggregate redemption price of $3.4 M, $2.5 M of which was funded by money placed into escrow when the Series E Preferred stock was issued in 11/10.
We are pleased that we have been able to redeem this $10 million investment in full over a two year period.
The Bottom Line: Another indication CEO Robin Smith is improving NBS and its balance sheet. Through the redemption of the Series E Preferred Stock, NBS will remove a significant overhang and simplify its capital structure and improve Common Stockholder value. The next hurdle is the forthcoming closing of the divestiture of the Erye China pharmaceutical subsidiary.
Definitely an actionable release and NYSE: NBS a BUY should be trading higher by at least $0.01 to $0.03 as momentum and volume have been strong! NBS closed at $0.72. Although the markets will be mixed today … as I have said repeatedly, "volume is staying strong … and I still emphasize a BUY … so, accumulate slowly to offset profit takers as day traders play through the daily movement.
Reiterating, CEO Robin has stuck to her … knitting the pieces back together from the Chinese sub sale - I would "stick-by" NBS as the further parts of the kimono unfold and fall away!! I am still focused on a $1.00, by end of FY12"!!
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.