News from July on private placement/financing.
CAMBRIDGE, Mass.--(BUSINESS WIRE)--July 10, 1997--BioSafe
International, Inc. (NASDAQ:BSFE), an innovative solid waste
management company, announced that it has raised a total of $9.6
million in its private placement of Series A convertible preferred
stock and that it has formed a new board of directors with
representation from the new investors. In addition, the Company
announced that the lead investor in the private placement, with an
investment of $5 million, was B III Capital Partners, L.P., a $500
million fund managed by DDJ Capital Management, LLC. Philip Strauss,
BioSafe's chairman, chief executive officer, and president, said,
"This successful financing positions BioSafe for rapid growth in the
solid waste management industry."
"We believe that BioSafe has tremendous potential for increasing
shareholder value, and we made our investment in BioSafe because we
want to participate in that exciting opportunity," said David
Breazzano, cofounder of DDJ Capital Management, LLC. Breazzano,
together with Daniel Harmetz and Judy Mencher, founded DDJ in 1996,
after careers together at Fidelity Investments.
"BioSafe's new board of directors will contribute useful business
experience and financial expertise to help guide the Company as it
implements its business strategy," said Strauss. From DDJ Capital
Management, David Breazzano and Bart Grenier will join BioSafe's
board. Breazzano, one of the three principals at DDJ, has over 16
years of investment experience and served as vice president and
portfolio manager at Fidelity Investments. Grenier, managing
director at DDJ, joined the firm in 1997 from Fidelity Investments,
where he was vice president and assistant equity division head. "We
expect that, given their experience, David Breazzano and Bart Grenier
will work closely with management to maximize shareholder value,"
said BioSafe's Strauss.
"We're also pleased that Charles Johnston, with his broad
background directing private and public companies, will become a
member of BioSafe's board," according to Strauss. Johnston, an
existing major investor, serves as chairman of Ventex Technology in
Riviera Beach, Florida, AFD Technologies in Jupiter, Florida, and ISI
Systems, a subsidiary of Teleglobe Corp. in Montreal, Quebec. In
1969, Johnston founded ISI Systems, which pioneered insurance
industry software. Johnston also serves as a trustee of Worcester
Polytechnic Institute in Worcester, Massachusetts, and as a director
of Spectrum Signal Processing in Vancouver, British Columbia, and
Kideo Productions and Infosafe Systems, both in New York City.
Bob Rivkin, the company's chief financial officer, will join
Philip Strauss as a director. Rivkin has 17 years of financial
experience in mergers/acquisitions, public offerings, and SEC
reporting, and 8 years in the environmental industry. Jay Matulich,
managing director of the merchant bank International Capital Growth
Ltd. in Santa Monica, California, and William Philipbar, one of the
pioneers in the environmental industry, will continue to serve as
members of BioSafe's board.
"With the new infusion of capital, BioSafe now has the resources
to take advantage of the business opportunities in the solid waste
industry," according to Strauss. The preferred stock was sold at a
price of $100 per share, with an annual dividend of 8 percent per
share, and is convertible into common stock at a maximum conversion
price of $0.28125 per share of common stock. With the completion of
this financing, BioSafe has approximately 52 million shares of common
stock either outstanding or reserved for issuance on the conversion
of the preferred stock.
BioSafe's business strategy focuses on developing an integrated
solid waste management company, involving landfills, hauling
operations, and transfer stations. The Company already has developed
an integrated operation at its landfill in Moretown, Vermont, with
the establishment of a waste-hauling operation there and the
lease-purchase of a nearby transfer station. "We plan to replicate
the Moretown model at numerous locations in the Northeast,"
according to Strauss. As part of its business strategy, BioSafe will
use its patented landfill remodeling process as a competitive
advantage to secure landfill capacity.
Certain of the above statements may be forward-looking statements
that involve risks and uncertainties. In such instances, actual
results could differ materially as a result of a variety of factors
including competitive developments and other risk factors listed form
time to time in the Company's Securities and Exchange Commission
reports.
CONTACT:
BioSafe International
Bob Rivkin
617/497-4500
CAMBRIDGE, Mass.--(BUSINESS WIRE)--June 26, 1997--BioSafe
International Inc. (NASDAQ:BSFE), an innovative solid waste
management company, announced that it has completed a private
placement of approximately $9 million of Series A convertible
preferred stock and that it will use the funds to retire debt,
undertake acquisitions and for general corporate purposes. In
addition, BioSafe announced that a single, new institutional
investor has taken a majority of the private placement and that
several existing major investors in the company have participated in
the financing. According to Philip Strauss, BioSafe's chairman,
president and chief executive officer, "This financing completes
BioSafe's successful turnaround and positions the company to take
advantage of the significant opportunities in the solid waste
management industry."
"Since BioSafe changed management in March 1996, the company has
taken decisive steps to streamline operations, improve
profitability and focus on developing an integrated solid waste
management company, involving landfills, hauling operations and
transfer stations," according to Strauss. He said, "The completion
of this financing shows renewed investor confidence in BioSafe and
its business strategy." As part of its business strategy, BioSafe
will use its patented landfill remodeling process as a competitive
advantage to secure landfill capacity.
The preferred stock was sold at a price of $100 per share, bears
an 8 percent annual dividend, and is convertible into common stock
at a conversion price of $0.2815 per share of common stock, which
conversion price may be reset to a lower conversion price upon the
occurrence of certain events. The dividend is payable in cash or in
additional shares of preferred stock at the company's option and is
subject to adjustment after three years.
As a result of the sale of the preferred stock, BioSafe
International now has approximately 49.7 million shares of common
stock outstanding or reserved for issuance upon the conversion of the
preferred stock. The company is currently considering the sale of
additional shares of the preferred stock on the same terms through
June 30, 1997. The company has filed a current report on Form 8-K
with the Securities and Exchange Commission setting forth further
details with respect to the financing.
Certain of the above statements may be forward-looking statements
that involve risks and uncertainties. In such instances, actual
results could differ materially as a result of a variety of factors
including competitive developments and other risk factors listed from
time to time in the company's Securities and Exchange Commission
reports.
--30--mb/bos* aw/bos
CONTACT:
BioSafe International
Bob Rivkin, (617) 497-4500 |
