Benzinga | Dec 28, 2020 04:06PM EST

Digirad Corporation Changes Corporate Name To Star Equity Holdings, Inc., Effective Jan. 1

Name Change Effective as of January 1, 2021

No Change to Names of Customer-Facing Businesses

SUWANEE, Ga., Dec. 28, 2020 (GLOBE NEWSWIRE) -- Digirad Corporation (NASDAQ:DRAD, DRADP))))) (the "Company"), a diversified holding company with three divisions: Healthcare, Building & Construction, and Real Estate & Investments, announced today that it has changed its corporate name to Star Equity Holdings, Inc. ("Star Equity Holdings") with an effective date of January 1, 2021 ("Effective Date"). The website for Star Equity Holdings will be www.starequity.com. In connection with the corporate name change, the Company's Common Stock will begin trading under the new ticker symbol "STRR" and have a CUSIP of 85513Q103, and the Company's Series A Cumulative Perpetual Preferred Stock will begin trading under the new ticker symbol "STRRP" and have a CUSIP of 85513Q202 at the opening of trading on January 4, 2021. On the Effective Date the Company's outstanding warrants expiring on May 28, 2025 will have a CUSIP of 85513Q111. The corporate name change does not affect the rights of the Company's stockholders.

Names of the Company's customer-facing businesses will not change. The Company's Healthcare division, for example, will continue to operate under the brand names "Digirad" and "Digirad Health", thus there will be no noticeable change for clients or employees of Digirad. The website for Digirad, the healthcare division, will continue to be www.digirad.com. The Company's Building & Construction division, which is operated under the Company's wholly owned subsidiary, ATRM Holdings, Inc. ("ATRM"), will now be doing business as "Star Building & Construction."

Furthermore, on the Effective Date, Matt Molchan, the Company's current CEO, will become CEO of Digirad Health, Inc. David Noble will remain the Company's COO and CFO. Jeff Eberwein, the Company's Chairman of the Board, will move into the role of Executive Chairman. Mitch Quain, a director of the Company since January 2019, will become the Lead Independent Director for Star Equity Holdings. Also on the Effective Date, the Company's headquarters will change to Old Greenwich, CT, but no employees will move locations as a result of this change. Digirad's headquarters will remain Suwanee, GA with substantial operations in Poway, CA.

Mr. Eberwein noted, "The new name reflects our business strategy and vision for continued growth. In 2020, we made tremendous progress on our growth and value maximization strategy by improving operating and financial results at our Building & Construction division and by entering into an agreement to sell DMS Health, the Company's Mobile Healthcare Business, for $18.75 million. Proceeds from this sale will substantially improve our balance sheet and better position us to fund high-return organic growth investments and pursue acquisitions. Potential acquisitions could be bolt-ons for our existing businesses or an entry into an entirely new business sector."