HearUSA redeems $4.56 million of series E convertible preferreds

By Sheri Kasprzak

New York, Sept. 26 - HearUSA, Inc. said it has redeemed all its outstanding 1998-E series convertible preferred stock totaling $4,563,000.

With accrued dividends and at an 8% premium, the company redeemed the preferreds at $4,956,376.

The redemption was funded by the company's recently closed $5.5 million private placement of 7% subordinated notes and warrants.

"Redemption of the 1998-E series preferred stock removes the potential for significant dilution of our common stockholders," said Paul Brown, the company's chairman, in a statement.

"Of the $365,000 redemption premium, approximately $231,000 had been accrued as of the date of payment. An additional charge of approximately $134,000, the accrued portion of the premium, will be expensed during the third quarter of 2005."

Based in West Palm Beach, Fla., HearUSA operates hearing-care centers.

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