January 12, 1999 13:10
WavePhore Raises $7.5 Million - Announces Sale of Common Shares
PHOENIX--(BUSINESS WIRE)--Jan. 12, 1999--WavePhore Inc., (NASDAQ:WAVO), the leading new media content integrator and architect of digital delivery systems, Tuesday announced it has raised $7.5 million from the sale of its common shares to a present Institutional Shareholder.
The Common Shares were sold at a premium to the closing sale price of the company's common shares.
"By placing these common shares, WavePhore has eliminated any near term financing issue. This additional funding, when added to our existing cash position, will be used for working capital and general corporate purposes, and should fund our existing operations beyond 1999," said David E. Deeds, chairman, president and chief executive officer of Wavephore Inc.
"This institutional holder is a long-term shareholder and we are pleased they approached us about an additional investment."
As part of the agreement, WavePhore provided a warrant to the institutional investor to purchase 250,000 common shares of the company at $10.66 per share. In addition, the company at its option, may sell additional common shares to the investor during the next 90 days at a premium to the then prevailing market price and receive an additional $7.5 million in proceeds.
About WavePhore
WavePhore Inc. is the leading new media content integrator and architect of digital delivery systems. It partners with the foremost providers of news, business data, Web-based content and multimedia programming to deliver selective intelligence and quality content to an information-dependent society.
WavePhore (www.wavephore.com) enables people and enterprises to more efficiently receive, manage and productively use all types of urgent, insightful, or relevant information. The company's technologies and services aggregate, filter, customize and distribute digital content (text, graphics, music, and video) using a wide range of reliable, low-cost broadcast (FM sideband, TV-VBI), satellite and Web-based delivery systems.
It has technology sourcing and strategic alliances with Microsoft, Intel, Compaq, Sony, Gateway, STB, ADS and PBS National Datacast, in addition to information service agreements with some two hundred Fortune 1,000 companies worldwide. Additional information on WavePhore is available via the Internet at wavephore.com. Information on its business units can be found at: wavetop.net, wavephore.net and newscast.com
Note to Editors: Certain of the above statements regarding WavePhore constitute forward-looking statements, which may involve risks and uncertainties. Actual results could differ materially from such forward-looking statements as a result of a variety of factors, including, but not limited to, technology changes, competitive developments, industry and market acceptance of new products and services, and risk factors listed from time to time in WavePhore's SEC filings.
CONTACT: WavePhore Inc., Phoenix
Kenneth D. Swenson, 602/952-5500 ext. 230
Fax 602/952-5517
kswenson@wavephore.com
www.wavephore.com
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