Dental Company Converts Stocks

Dental/Medical Diagnostic Systems in Westlake Village, which manufactures high-technology dental equipment and tooth-whitening materials, raised $2 million in a direct placement of preferred stock and warrants to purchase common stock.

CEO Robert Gurevitch said the money will be used to finance the continued roll-out of the company’s new product lines, plus sales of its digital radiography line.

The preferred shares will accumulate a dividend of 4% annually and may be exchanged for common shares at a fixed exchange rate of $4 or at an adjustable price, depending on the price of company stock at the time of conversion.

The preferred shares include a special feature that allows the company to convert them to cash rather than common shares, officials said. The investors were also issued warrants to purchase 40,000 shares of common stock at $2.75 per share.