Digitext, Corporate Life Agree to Note, Stock Swap

Digitext Inc. said its shareholders approved a plan by Corporate Life Insurance Co. to exchange a $1.5-million Digitext note that the insurance company holds for stock in Digitext.

Corporate Life, which holds substantially all of Digitext’s long-term debt, agreed to exchange the note for newly authorized preferred stock. The stock also is convertible into Digitext common stock at a rate of 75 cents a share, Digitext said. Digitext’s stock recently has traded in the open market for 45 cents a share.

Digitext makes a keyboard that rapidly enters text into a computer, and is marketed to stenographers, legal offices and other major text producers.