Eckmar Corporation - Stock Certificate

The Eckmar Corporation has completed arrangements with the GAC Corporation to ex change the entire $3.4‐million of GAC Merchandising pre ferred stock that Eckmar has held since 1969. Payment will consist of $400,000 in cash and two notes of $1.5‐million each, payable Jan. 1, 1973, and Jan. 1, 1974. The notes will bear interest at the prevailing prime rate.

The proceeds will be used to eliminate Eckmar's remaining bank debt, which had reached as high as $12.8‐million in 1971 and carried interest charges of as high as $1.6‐million annually.

From casetext.com:

In 1973, Briarcliff entered into negotiations with a group of corporations consisting of Eckmar Corporation (Eckmar), Eckmar HDC Corporation (HDC), Health-Chem Corporation (Health-Chem) and Medallion Leisure Corporation (Medallion). Eckmar owned a majority interest in HDC and 80 percent of the stock of Medallion. HDC owned approximately 82 percent of the stock of Health-Chem.

As a result of these negotiations, on August 10, 1973, Eckmar, HDC, and Briarcliff entered into an agreement whereby HDC agreed to change its name to Health-Med Corporation (Health-Med) and undergo a recapitalization. After the recapitalization, the authorized stock of Health-Med would consist of 15,000 preferred shares, 4,000 junior preferred shares, and 800,000 common shares. As part of the recapitalization, Eckmar would exchange the 1,000,000 shares of HDC common stock it held prior to the recapitalization for 2,800 shares of Health-Med junior preferred stock. Eckmar would also transfer its 866,000 shares of preferred and 600,000 shares of common stock in Medallion to Health-Med in exchange for an additional 1,200 Health-Med junior preferred shares. Briarcliff would purchase 40,000 Health-Med common shares for $100,000, which would constitute all of the then outstanding Health-Med common shares. Thus, after the closing, Eckmar would own 4,000 shares of Health-Med junior preferred stock and approximately 500 shares of preferred stock, and Briarcliff would own 40,000 shares of Health-Med common stock. As a result, Eckmar would hold stock possessing approximately 10 percent of the total combined voting power of all shares entitled to vote and Briarcliff would hold stock possessing approximately 90 percent of the total combined voting power.