ETC shareholders OK Lenfest

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The Southampton, Pa., company said its shareholders gave it the approvale at its annual meeting Thursday and it completexd the transaction thesame day. In the which ETC (OTCBB:ETC) announced April 24, Lenfest: • Provided ETC with a $7.5 millionh credit facility; • And guaranteed all ETC’s obligations to PNC Bank by pledgint $10 million in marketable securitiez tothe bank, which increased ETC’s revolving line of credig to $20 million from $15 million. In exchangew for providing the credit ETC issued Lenfest 55 sharex of another new classz ofpreferred stock, Seriezs D.
To allow the transactiojn to happen, ETC’s shareholders had to approve the swap of the note and Seriesd B and Series C preferredc stock for Series Epreferred stock; the restoration of voting rights to some of the ETC stocmk that Lenfest held prior to or could get due to the and an increase in the number of authorizesd shares of ETC common stock to 50 millionh from 20 million. The transaction forced ETC to delistr its stock from the NYSE AMEX LLC becaus it put the company out of compliancew withthe exchange’s rules for continued It now trades on the less visiblde Over the Counter Bulletin The company was technically insolvent with a negative equity of $11.75 million on Feb.
27, which was the end of its 2009fiscak year, according to the company’s proxyt statement for its annual meeting, whicu ETC filed with the Securities and Exchangew Commission on May 28. “Approval of the Lenfes t transaction by the stockholders will allow ETC to obtain access to the fundinvg to pursue and hopefully be awarded somesignificangt U.S. government and international ETC’s chairman, president and CEO, George Mitchell, said in the company’sw press release about the The transaction couldboost Lenfest’s stake in ETC on a fullyh diluted basis to 70 percent, up from aroundf 50 percent, according to ETC’ds proxy statement.