SALT LAKE CITY, Oct. 21 /PRNewswire-FirstCall/ -- FranklinCovey (NYSE: FC)
today announced that it has given shareholders of its Series A Preferred Stock
notice of redemption for $10 million of the current outstanding preferred
stock. The required 15 business day notice given today for shareholders of
record as of today will provide for a $25 per share redemption of preferred
stock on November 11, 2005 on a prorata basis.
The Company also announced that it intends to seek shareholder approval to
amend its articles of incorporation to extend the period during which it has
the right to redeem the outstanding preferred stock at $25 per share. The
amendment would extend the current redemption deadline from March 8, 2006 to
December 31, 2006. It would also provide for the right to extend the
redemption period for an additional year to December 31, 2007, if another
$10 million is redeemed before December 31, 2006. Knowledge Capital, an
entity which currently holds in excess of 90% of the preferred stock
outstanding and has approximately 21% of the common stock voting on an
as-converted basis, has signed a voting agreement to vote in favor of the
proposal to extend the redemption period. There are approximately 2.3 million
shares of the Series A Preferred Stock currently outstanding.
About FranklinCovey
FranklinCovey is a leading learning and performance services firm
assisting professionals and organizations in measurably increasing their
effectiveness in leadership, productivity, communication and sales. Clients
include 91 of the Fortune 100, more than three-quarters of the Fortune 500,
thousands of small and mid-sized businesses, as well as numerous government
entities. Organizations and professionals access FranklinCovey services and
products through consulting services, licensed client facilitators, one-on-one
coaching, public workshops, catalogs, more than 100 retail stores, and
http://www.franklincovey.com . Nearly 1,500 FranklinCovey associates provide
professional services and products in 36 offices in 129 countries.
Safe-Harbor Statement
This announcement contains forward-looking statements that necessarily are
based on certain assumptions and are subject to certain risks and
uncertainties, including general economic conditions, shareholder approval of
the extension proposal and other factors identified and discussed in the
Company's 2004 10-K report and subsequent 8-K and 10-Q reports filed with the
Securities and Exchange Commission, many of which are beyond the control or
influence of the Company. There can be no assurance that the Company's actual
future performance will meet management's expectations. These forward-looking
statements are based on management's expectations as of the date hereof, and
are subject to the outcome of various factors, including those listed above,
any one of which may cause future results to differ materially from the
Company's current expectations.
SOURCE FranklinCovey
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Related links:
http://www.franklincovey.com
CONTACT:
Richard R. Putnam, Investor Relations,
FranklinCovey, +1-801-817-1776
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