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Rights Offering
12 Months Ended
Dec. 31, 2016
Rights Offering [Abstract]  
Rights Offering [Text Block]

13.  Rights Offering


On November 19, 2015, the Company completed a rights offering.  The Company received subscriptions and over-subscriptions for a total of 16,512 shares of Preferred Stock, representing approximately 33% of the shares offered.  All of the subscriptions and over-subscriptions were accepted, for aggregate gross proceeds to the Company of approximately $3.3 million.  Costs associated with the offering were approximately $278,000, which were recorded within Additional Paid in Capital.  The Company used the net proceeds for repayment of debt, required pension plan payments and for general corporate purposes.


Under the terms of the rights offering, the Company distributed one non-transferrable right for each outstanding share of Common Stock to stockholders of record on September 28, 2015.  Thirty-three non-transferable rights entitled the holder to purchase one share of Preferred Stock at a subscription price of $200.00 per share.  The Preferred Stock carries a 6.0% cumulative annual dividend, which amounts to $198,000 on an annual basis.  The Preferred Stock is convertible into shares of Common Stock at an initial conversion price of $10.00 per share, representing a conversion ratio of 20 shares of Common Stock for each share of Preferred Stock held at the time of conversion, subject to adjustment.  For the years ended December 31, 2016 and 2015, the Company accumulated unpaid dividends related to Preferred Stock of $44,000 and $23,000, respectively.  In the year ended December 31, 2016, the Company paid dividends related to Preferred Stock of $177,000.  No dividends were paid in the year ended December 31, 2015.  The shares of Preferred Stock may be subject to mandatory conversion after three years, or as early as one year if the closing sale price of the Common Stock has been greater than or equal to $15.00 for 30 consecutive trading days.


As part of the rights offering, George W. Schiele, Alan K. Greene and Alberto Shaio, each a director of the Company, exercised rights to purchase 250, 252 and 252 shares of Preferred Stock, respectively.