Information Resource Engineering Inc., a Baltimore-based computer encryption company, announced it would redeem all its 9 percent convertible redeemable cumulative preferred stock on June 30.
The stock can be redeemed for $11 a share plus any accrued and unpaid dividend through June 30. It is also convertible into common stock at the rate of 1.1765 shares of common stock for each preferred share. The conversion rights terminate at the close of business June 23.
Information Resource closed yesterday up 50 cents at $26.50 a share.
Anthony A. Caputo, the company's chairman, said in a statement that the redemption of preferred stock would benefit shareholders because the price of the company's common stock has risen recently and that it would benefit the company by retaining funds previously used for dividends.
The company's stock reached a 52-week high Wednesday of $28 a share. It recently announced first-quarter earnings of $44,668, or 1 cent a share, as revenue increased 340 percent over the year-ago period to $1.5 million.