The following was posted on the PR NewsWire: I sure like the way
this is headed. The terms/conditions for the influx of new capital
is fantastic. Now, lets see how they use it....
SAN MATEO, Calif., Sept. 19 /PRNewswire/ -- Charlotte Walker,
president of Sanctuary Woods Multimedia Corporation
(Vancouver: SWD), announced today that the educational
software company has received and closed $4.55 million in
financing.
According to Walker, the proceeds will be used to
re-capitalize the Company's balance sheet and provide
working capital to fund the fiscal 1997-1998 operating
plan, as well as pay down the existing line of credit
and payables balances. "This financing allows us to
execute our product strategy and to support our products
in the school, consumer retail and on-line markets," she said.
The Company, which recently shipped NFL Math 2nd Edition under
its Head Coach brand, is expected to release NFL Reading and
Franklin's Activity Center in October, as well as open a
transaction-based web site, www.ah-hah.com.
The financing, arranged primarily with large institutional
investors, is an 8% debenture convertible into the Company's
common stock at a $0.55 per share conversion price, with a
due date of July 31, 1999, which automatically converts at
maturity, if not previously converted. In addition, for each
$2.00 invested, investors have been granted three-year warrants
to purchase one share of the Company's common stock with a
strike price of $0.6875 each.
In a related announcement, the maturity date of Sanctuary
Woods' credit line with its lending bank was extended to
April 1997. The agreement also establishes a revolving line
of credit up to the defined borrowing base or $750,000, whichever
is less.
Following significant losses in 1995, Sanctuary Woods
replaced most of its top management, sold its entertainment
product development studio to Disney Interactive in May of
this year, and posted net income in the quarter ended June 30,
1996. Today, Sanctuary Woods focuses development on its line
of educational software which includes NFL(TM) Math and Major
League Math(TM) in the Head Coach(TM) series of products. The
company is headquartered in San Mateo, Calif. |
