American Mobile Boosts Equity by $11.4 Million
American Mobile Systems Inc., a Woodland Hills operator of mobile-radio systems, said it has boosted its equity by $11.4 million, which it plans to use to reduce debt, build working capital and expand a mobile-radio network in Florida.
The equity was raised through a $4.2-million private placement of common stock and the sale of $1 million in Treasury notes. The company also converted about $6.2 million of debt into common shares.
With the debt conversion, the company said it now has sufficient operating income to pay annual interest costs on its remaining bank debt as well as fund capital costs related to marketing.