WavePhore, Inc. Announces Completion of $24 Million Private Placement
PHOENIX, July 25 /PRNewswire/ -- WavePhore, Inc. (Nasdaq:WAVO), announced today it has completed a private
placement of Series C Convertible Preferred Shares priced at $1,000.00 per share resulting in gross proceeds of $24 million.
The securities were placed with six institutional investors led by an affiliate of Credit Suisse First Boston.
The Preferred Shares carry a dividend rate of 6% per annum, which may be paid in cash or common stock and are
non-voting. The conversion price of the Preferred Shares will be 115% of the average of the closing sale prices of the
Company's common shares on the five trading days prior to the closing date. This conversion price will be in effect for the first
six months following the closing and may be extended up to twelve months. Thereafter, the conversion price may be adjusted
depending on 100% of the closing sale prices of the Company's common stock. Southcoast Capital Corporation served as
placement agent in connection with the transaction.
``We feel this is an excellent opportunity for WavePhore to add additional capital on terms we feel are favorable to the
Company'' said David E. Deeds, chairman, president and CEO of WavePhore, Inc. ``This additional funding of $24 million
will be used for working capital and general corporate purposes, including the Paracel Online Systems, Inc. acquisition, and
possible other acquisitions in the information services and data broadcasting business.''
WavePhore, Inc., the industry leader in data broadcasting, is comprised of three divisions: WavePhore Networks, WavePhore
Newscast and WaveTop. WavePhore Networks provides flexible, high speed data delivery for information providers to more
than 60,000 sites worldwide. WavePhore Newscast delivers real-time, custom-filtered business news to more than 100,000
business users across the U.S., Canada and Europe providing individually profiled information to the corporate desktop.
WaveTop has partnered with PBS National Datacast to broadcast data to their 264 PBS member stations. WaveTop
Broadcast PC push software design combines a server encoder, client decoder and a simple user interface for easy selection
of multiple content channels. WavePhore VBI client software provides a solution for data broadcasting to the home PC
market, enabling multimedia content to be pushed through existing television broadcast signals. Additional information on
WavePhore is available via the Internet at wavephore.com, wavetop.net, and
newscast.com.
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.
SOURCE: WavePhore, Inc.
Contact: Kenneth D. Swenson, Chief Financial Officer, WavePhore, Inc., 602-952-5500 x230, kswenson@wavephore.com
More news for referenced ticker symbols: WAVO, and related industries: computer, internet. |
