Devcon gets reprieve after failing to register preferred stock sold in February 2006

By Sheri Kasprzak

New York, April 3 - Devcon International Corp. entered into a forbearance agreement with the holders of its series A convertible preferred stock after the company failed to have the registration statement declared effective in a timely manner.

The holders have agreed to refrain from taking any remedial action against the company until Jan. 2, 2008.

The investors have also agreed to refrain from declaring the occurrence of any triggering event caused by the failure to have the statement declared effective.

For the agreement, the investors received a reduction in the conversion price to $6.75 from $9.54. The preferreds will also now pay dividends at 10% annually, bumped up from 9%.

A total of $45 million in preferreds were sold in February 2006.

Devcon, based in Boca Raton, Fla., provides electronic security services.

The stock closed unchanged at $4.50 (Nasdaq: DEVC).

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