Urohealth to Redeem Preferred Shares

Urohealth Systems Inc.’s board authorized the redemption of the remaining 203,000 series A preferred shares issued by Urohealth’s Davstar Inc. unit.

In a press release, Urohealth said the stock will be redeemed at $5 a share, plus a 25-cent premium and accrued interest for a total of $6.20 a share. The shares were issued by the company’s previous management when Urohealth was known as Davstar Industries Ltd. The Davstar Industries operations became the Davstar unit when the company changed its name to Urohealth Systems, according to a company spokeswoman. The repurchase will eliminate the accumulation of dividends, which accrue at 7% a year.

Urohealth’s board also approved a financing proposal from Bankers Trust for a $20-million revolving line of credit. The proceeds will be used for working capital needs and to enable Urohealth to continue acquiring gynecological and urological products.