Avatech Solutions Completes Redemption of Preferred Stock

BALTIMORE – Avatech Solutions, Inc, the nationwide technology experts for design, engineering, and facilities management, announced that on March 31, 2010 it completed the redemption of its Series F Convertible Preferred Stock offering ("Series F").

In June 2006, Avatech issued $4 million of the preferred stock as an integral part of the funding of an acquisition. The Series F issuance provided for a 10% dividend payment, 800,000 common stock warrants and could have been converted into 2,055,000 shares of common stock. Included in the final redemption payment was also the final dividend payment due under the issuance and with the redemption completed, the conversion rights no longer exist. The common stock warrants have an exercise price of $2.30 per share and will expire on June 12, 2010.

"This continues the strengthening of the Company’s balance sheet and it is particularly noteworthy that the redemption took place over the last two years during the economic turmoil that racked much of our country," commented President and Chief Financial Officer Lawrence Rychlak. "By closely managing our operations and financial position, we successfully met all of the redemption and dividend provisions of this preferred stock offering without incurring any other financial obligation.

"By fully redeeming this offering, we have reduced our future dividend payments, thus increasing future cash flows and we have simplified our equity structure. Combined with our profitable operating results, our strong balance sheet and cash flows positions us well for our future strategic endeavors," concluded Mr. Rychlak.