Directors of Environmental Diagnostics Inc. said the company will not extend a deadline of midnight, January 23, for converting its publicly held warrants into common stock.
The decision to enforce the conversion deadline virtually ensures Environmental Diagnostics of a capital infusion of nearly $1.3 million.
When the Irvine-based firm went public in 1984, it issued 2.75 million warrants as part of a package of 2 shares of common stock and a warrant for $1. Only 171,000 warrants have been converted so far. Under the terms of the warrant conversion, two warrants plus $1 gives the owner the right to one share of the company' common stock. The company's shares have been selling recently at about $2.75 in over-the-counter trading, a company spokeswoman said.