THE CHECK IS IN THE MAIL->TIC Target Invest Consulting LLC Assures Constellation 3D That the First Tranche of Its $15 Million Commitment is En Route
Constellation 3D Announces Letter of Intent for the Development and
Manufacture of 200 Millimeter Format FMD Discs and Drives
NEW YORK, March 18 /PRNewswire-FirstCall/ -- Constellation 3D, Inc. (the "Company") (Nasdaq: CDDD) - developer of Fluorescent Multilayer Disc (FMD) and Card (FMC) technologies announced that TIC Target Invest Consulting LLC (TIC) has assured the Company that the first "tranche" of its $15 million investment is en route to the Company and that TIC remains fully committed to providing the Company with the entire $15 million investment. The Company also announced that it has signed a Letter of Intent for the development and manufacture of FMD WORM and FMD ROM drives and discs with a Russian partner.
TIC has given the Company repeated reassurances concerning its intended financing of C3D, and to that end has provided the Company with financial documentation as well as a copy of TIC's wiring instructions to its Bank, wherein TIC's affiliates and their Bank have been instructed to send a $2 million first "tranche" to the Company's account - followed by the remaining investment funds. The Company has not yet received the money and while the Company believes that TIC is legally obligated, no assurance can be made that the investment will in fact be made by TIC or, if an investment is made, that it will be for the entire $15 million committed to by TIC. In the interim, the Company is seeking alternative financing from qualified third parties and the Company is currently in negotiations with additional investors. However, no assurance can be made that an investment will be made or that if an investment is made it will be on terms favorable to the Company.
The Company also announced that it has signed a Letter of Intent with OAO Kontsern Nauchny Tsentr ("Kontsern"), a subsidiary of AFK 'Sistema' (Russia) to enter into a joint venture with Constellation or the Company's Russian subsidiary - ZAO Constellation 3D Vostok ("C3D Vostok") - for the development and manufacture of FMD WORM (format 200 mm) and FMD ROM (format 200 mm) drives and discs. The Letter of Intent contemplates, upon execution of a final agreement, an immediate investment by Kontsern of $1,350,000, of which $475,000 will be used for corporate purposes and $875,000 will be invested in facilities and production equipment. The agreement also contemplates that, following completion by the joint venture of a first generation engineering model product and the development of a process of small-scale manufacture, Kontsern and its parent company, AFK 'Sistema' (Russia) would arrange - on behalf of the joint venture - a credit line of up to $2.5 million to be allocated for expansion of the productive capacity of the joint venture and replenishment of the current assets of the joint venture. A definitive joint venture agreement is expected to be completed in the near future, however no assurances can be made that a final agreement will be executed or if a final agreement is signed that the joint venture will be able to meet the necessary criteria for or otherwise be able to obtain the proposed credit line.
AFK 'Sistema'
AFK SISTEMA is a Joint-Stock Financial Corporation that owns and controls enterprises in the 12 sectors of the Russian economy. Eighty percent of the Corporation's assets are in telecommunications, electronics and radio engineering, biomedicine and mass media. The Company's strategic partners include ING Barings and Deutsche Telekom. Additional information on the Company is available at www.sistema.ru .
Constellation 3D, Inc.
The Company is the worldwide leader in the development of high capacity Fluorescent Multilayer Disc and Card (FMD/C) technology. The Company holds or has made applications for 122 worldwide patents in the field of optical data storage, and is supported by a team of world-class scientists. Headquartered in New York City, the Company has additional offices and laboratories in Israel and Russia. More information is available at www.c-3d.net.
Safe Harbor Statement
Statements contained in the news release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements such as "TIC has assured the Company that the first "tranche" of its $15 million investment is en route to the Company and that TIC remains fully committed to providing the Company with the entire $15 million investment" and "The Company has not yet received the money and while the Company believes that TIC is legally obligated, no assurance can be made that the investment will in fact be made by TIC or if an investment is made that it will be for the entire $15 million committed by TIC" and "The Company is currently in negotiations with additional investors, however no assurance can be made that an investment will be made or that if an investment is made it will be on terms favorable to the Company" and "A definitive joint venture agreement is expected to be completed in the near future, however no assurances can be made that a final agreement will be executed or if a final agreement is signed that the joint venture will be able to meet the necessary criteria for or otherwise be able to obtain the proposed credit line" are subject to risks and uncertainties which include, but are not limited to additional financings, market conditions, R&D efforts, competition, ongoing discussions with product and equipment manufactures, and technological advances, and "Risk Factors" as stated in recent SEC filings, which may cause actual results to differ materially from expected results.
For more information contact:
Investor/ Broker Inquiries: Company Contacts:
Bradley Meyer/Harvey Goralnick Michael Goldberg, Esq.
FOCUS Partners LLC 1-954-568-3007
1-212-752-9445 mgoldberg@c-3d.net
investors@c-3d.net
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SOURCE Constellation 3D, Inc.
CO: Constellation 3D, Inc.; TIC Target Invest Consulting LLC
ST: New York
IN:
SU: FNC
03/18/2002 11:18 EST prnewswire.com |
