Shareholder's Equity

6 Months Ended

Jun. 30, 2012

Shareholder's Equity

10. Shareholder’s Equity

During the six months ended June 30, 2012, the remaining 11,000 outstanding shares of Series A Convertible Preferred Stock (the “Series A Shares”) were converted, at a conversion price of $7.65, into a total of 143,790 shares of our common stock. At the same time we issued to the holders of those Series A Shares a total of 37,272 additional shares of common stock in in exchange for the unpaid dividends that had accumulated on their Series A Shares.

The Series A Shares were sold by the Company in a private placement, that commenced in 2009 and was completed in 2010, of 126,500 Series A Shares, raising gross proceeds of $12,655,000. The holders of 115,500 of the Series A Shares converted those shares, at $7.65 per common share, into a total of 1,510,238 shares of our common stock in the third quarter of 2011. At the same time we issued to those Series A holders a total of 328,100 additional shares of common stock in lieu of payment in cash of the unpaid dividends that had accumulated on the Series A Shares.

On August 26, 2011, we sold to institutional investors a total of 112,000 shares of a newly created Series B Convertible 8.4% Noncumulative Preferred Stock (the “Series B Shares”), at a price of $100.00 per share in cash, generating aggregate gross proceeds to the Company of $11.2 million.

On April 20, 2012 we sold to institutional investors a total of 4,201,278 shares of our common stock at $6.26 per share, generating aggregate gross proceeds to the Company of $26.3 million.