Verso Technologies Raises Additional Capital
Business Editors
ATLANTA--(BUSINESS WIRE)--Oct. 4, 2000--
Recent investments in the company result in $ 7.8 million in gross proceeds
Verso Technologies, Inc. (Nasdaq: VRSO), a leading full service provider (FSP), today announced that recent investments in the company and its merger partner, Cereus Technology Partners, Inc. have yielded the company a total of approximately $24.8 million in gross proceeds in the third quarter and $3 million in the fourth quarter.
As previously announced, on September 29, 2000, the company completed its merger with Cereus, and in connection with such merger, the company changed its name to Verso Technologies, Inc.
In the third quarter, prior to the merger with the company, Cereus completed the private placement of shares of its common stock and warrants to acquire common stock, which yielded proceeds of approximately $16.3 million, of which approximately $4.5 million was invested by two strategic institutional investors. As a result of the merger, this capital is now available to the company, and the company will use this capital primarily for general corporate purposes and to pursue acquisition opportunities.
In July of 2000, the company announced that an institutional investor committed to fund $7 million in Q private placement of subordinated convertible debt, of which $4 million dollars was funded immediately, $1 million was to be funded upon the execution of a definitive agreement to sell all or part of the company's hospitality group and $2 million was to be funded upon the closing of the company's merger with Cereus. The company has recently satisfied these two conditions, and expects to receive the balance of $3 million from the institutional investor in the next several weeks. (See related press releases dated July 27th, September 29th, and October 2, 2000.)
In addition, prior to the company's merger with Cereus, certain Cereus warrant holders exercised their warrants to acquire Cereus common stock, which resulted in proceeds of $3.6 million to the company. Also, during the third quarter, a strategic corporate partner invested approximately $960,000 in the company.
Steve Odom, chief executive officer of Verso commented, "As we have previously announced, we also expect to receive $10 million in gross proceeds when we close the sale of our lodging business this month. The proceeds from that sale, the $27.8 million noted above, and the cash invested by Cereus prior to the closing of our merger, will have provided Verso with close to $50 million in capital infusion since June of this year. At September 30, 2000, the company had approximately $21 million in cash and approximately $5 million in outstanding borrowings under our bank line. We believe the company has a solid balance sheet with sufficient capital to satisfy our outstanding liabilities, fund our near term growth initiatives and fund our working capital requirements to get Verso to a cash flow positive position."
About Verso Technologies
Headquartered in Atlanta, Georgia, Verso Technologies, Inc. is a full serviCe provider (FSP) of application solutions that add value for our clients by giving them the edge they need to stay competitive. Verso's full service solutions include eBusiless strategy consulting, web design and development, application hosting, application and network integration, enterprise management services and outsourced customer resource center services. Based on each client's needs, Verso plans, builds and runs personalized business solutions that seek to improve profitability, efficiency, speed and/or customer service capabilities. Verso can be accessed at www.verso.com or by calling 770-612-3500.
Forward Looking Statements:
Certain statements contained in this release that are not statements of historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "intend," "will" and similar expressions are examples of words that identify forward-looking statements. Forward-looking statements include, without limitation, statements regarding our future financial position, business strategy and expected cost savings. Thmse forward-looking statements are based on our current beliefs, as well as assumptions we have made based upon information currently available to us.
CONTACT: Verso Technologies, Inc.
Media
PamSanders, 678-581-3565
pam.sanders@verso.com
or
Investor Relations
Jennifer Pepper, 678-589-3579
Jennifer.Pepper@verso.com |
