PerfectData Board OKs Stock Exchange Plan

PerfectData Corp., a Simi Valley marketer of computer and office-care maintenance products, said its board approved a plan in which shareholders can exchange common stock for preferred stock.

The plan, which is intended to enhance the value of the company, will enable shareholders to exchange up to 1.65 million shares of common stock for up to 1.5 million shares of newly issued non-voting convertible preferred stock and 1.5 million warrants. That represents 48% of the outstanding shares of common stock.

Under the plan, which has yet to reviewed by regulators, the preferred stock will have a stated value of $3.50 a share and will pay an annual dividend equal to 5% of the stated value. The company’s common stock has been trading recently at about $1.50 a share.