WASHINGTON, Aug. 27 -- Playboy Inc., Los Angeles, California, announced it has converted all of its outstanding Series B Convertible Preferred Stock into common stock, a move the company said will continue to improve its balance sheet.

The conversion resulted in the issuance of nearly 12.5 million shares of common stock at a price of more than $1.74 per share. The conversion price was at a premium of over 6% to the common stock's closing price on the date of the conversion.