Digirad issued approximately 1.6 million shares of newly authorized preferred stock with a value of $10 per share in exchange for all of ATRM's common and preferred stock. Digirad expects the preferred stock to trade on the Nasdaq global market under the ticker symbol DRADP as soon as this week. ATRM will become a wholly owned subsidiary of Digirad.
In connection with the transaction, Digirad also completed a private placement of 300,000 shares of preferred stock at $10 per share to Lone Star Value Investors for total proceeds of $3 million. The company plans to use the proceeds to repay ATRM's debt.
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