Digirad Corp. completed the acquisition of ATRM Holdings Inc. as part of plans to diversify its business.
Suwanee, Ga.-based Digirad bought the company by issuing about 1.6 million series A preferred stock to ATRM Holdings. The stock is valued at $10 each and pays dividends at a rate of 10%.
ATRM Holdings, which manufactures and sells modular buildings for commercial and residential applications, will deregister and delist its common shares and will operate as a wholly owned unit of Digirad.
Digirad expects that its preferred shares will start trading on the Nasdaq Global Market on Sept. 11 under the ticker symbol DRADP.
Concurrent with the transaction, Digirad issued 300,000 preferred shares to Lone Star Value Investors LP in a private placement for gross proceeds of about $3 million. Each share in the placement was priced at $10.
Digirad plans to use the proceeds from the offering to payoff ATRM Holdings' debt.
