Matt,
NPCT has a small float and traded way above its average daily
volume last week and closed Friday on its yearly highs. I am
hearing lots of buyers coming in on the bell tomorrow so watch
it and here is the news that came out Friday after the close.
Nanopierce Technologies, Inc. Closes $8.5 Million Financing
DENVER, July 24 /PRNewswire/ -- Nanopierce Technologies, Inc. (OTC
Bulletin Board: NPCT) today announced that it
had completed a $8,500,000.00 Financing, through its Financial
Consulting Firm, The Global Funding Group, L.L.C.,
Raleigh, North Carolina.
Gilbert Olachea, President and Chief Executive Officer of Nanopierce,
stated, "This investment is a significant milestone in
the success of Nanopierce. It also is a clear commitment by the
financial market of the confidence they have in Nanopierce's
ability to secure the emerging market for its technology. While
executing to a precise strategy and tactics in bringing
profitable markets into our fold, we will simultaneously focus on
investor equity and shareholder value."
The $8.5 Million financing is a staged, two year credit facility. At its
discretion, when and as required, Nanopierce has the
right to require the purchaser to purchase up to 150,000 Series B
Preferred Shares for a total of $1,500,000.00 and up to
700,000 Series C Preferred Shares for $7,000,000.00. Both Series of
Preferred Shares are convertible into the Common
Stock of Nanopierce Technologies, Inc. The conversion price of the
Series B Preferred Shares is the lesser of 110% of the
average of the Closing Bid Price for the Common Stock of Nanopierce on
the Date of Closing or 80% of the average of the
Closing Bid Price for the five days preceding the Date of Conversion.
The Series C Preferred Shares are purchasable at a 17.5% discount from
the average of the Closing Bid Prices for the five
days preceding the Date of Conversion. This structure minimizes the
dilutive effect of the financing on the Company.
The Preferred Series are non-voting. The shares have a deemed value of
$10.00 per share. In addition, Nanopierce issued
to the purchaser of the Preferred Series B and C shares three-year
warrants exercisable at 125% of the closing bid price on
the date of closing into common shares of Nanopierce. In conjunction
with the financing, the Company has agreed to
provide certain registration right with respect to the securities
offered.
Nanopierce owns ten patents, seven patent applications pending, two
patent applications in preparation and other intellectual
properties, relating to the Nanopierce Technology Material (NTM). This
revolutionary material is designed to provide an
electrically and mechanically reliable interconnection method for
high-density circuit board components without the use of
metal pins and solder techniques. Of the 12,342,350 shares outstanding,
Intercell Corporation (OTC Bulletin Board:
INCE), affiliates and others own approximately 11,747,111 restricted
shares.
As inducement to obtain the financing Paul H. Metzinger, Executive Vice
President of Nanopierce and his wife agreed to
escrow a significant amount of their ownership in Nanopierce.
Nanopierce will file an 8K Report with the Securities and Exchange
Commission relating to this financing on August 7, 1998.
Interested parties are invited to access such filing by the Electronic
EDGAR Filing System of the Securities and Exchange
Commission.
SOURCE Nanopierce Technologies, Inc.
/CONTACT: Lisa Conino, Director of Public Relations, Global Public
Relations Services, Ltd., 919-782-1500 or e-mail: globallwc@ipass.net/
(NPCT INCE)
Claudia |
