Simon Transportation Services, Salt Lake City, announced that a corporation controlled by Jerry Moyes has agreed to purchase approximately $2.1 million of Simon Transportation stock.

The investment is in addition to a $6.7 million investment by a partnership controlled by the family of Jerry Moyes effective June 30.
According to Simon CEO Jon Isaacson, a corporation controlled by Jerry Moyes, who is also Simon's Chairman of the Board, made advances to the company for equipment purchases and general corporate purposes during the September quarter. At September 30, the corporation agreed to convert the approximately $2.1 million of outstanding advances into equity in the form of Series II preferred stock and Series II preferred stock warrants. The 130,000 shares of preferred stock were priced at $16 per share, and each share is convertible into 10 shares of Class A Common Stock.
The purchase agreement also includes warrants to purchase 130,000 shares of preferred stock at $16 per share. The preferred stock purchase price is equivalent on a converted basis to the $1.60 closing price of the Company's Class A Common Stock on September 28. The issuance of the Series II preferred stock, Series II preferred stock warrants, and certain anti-dilution provisions of the Series I preferred stock warrants from the June 30 transaction are subject to stockholder approval.