Penn Treaty To Issue $14 Million In Notes

Holders of the notes can convert them into Penn Treaty stock at a price of $1.75 per share if the market price of the stock exceeds $1.93.

Philadelphia Brokerage Corp., Wayne, Pa., will be making a market in the notes, and Penn Treaty says it plans to register the notes with the U.S. Securities and Exchange Commission so that the institutions and wealthy individuals that buy the notes can resell them.

Shareholders have a right to vote on the issuance of the notes. If shareholders reject the note sale, Penn Treaty will buy the notes back, the company says.