Certron Corp. has agreed with its former banks to pay $150,000 in cash for the cancellation of stock purchase warrants held by the banks since 1978.
The warrants to purchase 300,000 shares of Certron's common stock at 10 cents per share were issued for expiration in 1988 in connection with restructure of debt. If the warrants were exercised in full, the number of shares acquired would equal about 10% of the company's outstanding common stock.
Ed Gamson, Certron's chairman, said the Anaheim company decided to hold on to the stock in light of what he said is a bright future for Certron. "It appeared to us as an opportunity to reduce outstanding potential by 10%" he said.
In over-the-counter market trading Monday, Certron shares closed at $1.06, unchanged from Friday.
Certron manufactures and distributes audio recording tapes and floppy disks, and distributes video cassettes to the consumer market.