Com Systems Sells Stock to OmniCorp

Com Systems, a Van Nuys-based long-distance telecommunications operator, said it sold 4.5 million shares of its Series C cumulative convertible preferred stock for $9 million, and $13 million of its five-year, 11.5% convertible subordinated debentures to OmniCorp International B.V.

The preferred stock is convertible into 4.5 million shares of Com Systems common stock, and the debentures are convertible into 2.9 million shares of common stock.

Com Systems said proceeds from the sales were used to pay debts and expenses and for the acquisition of TMC Communications, a Santa Barbara telecommunications company.

It also said that three outside directors resigned and that the positions would be filled by designates of OmniCorp.