They did sell some stock to an institutional investor at the end of 1998, which may well have been this bank. Their 10-K says they have no credit line, and doesn't mention this agreement with the international bank at all. Maybe it is not a binding commitment, just an understanding.
From the latest 10-Q:
Our stock purchase agreement with Tako Ventures, LLC ("Tako"), an investment
entity controlled by Lawrence J. Ellison, a director of the Company, executed in
June 1997, gave Tako certain rights to participate in future sales of common
stock at comparable terms and conditions. In December 1998, we closed a private
placement of common stock to an institutional investor at a 4% discount to a
weighted average stock price prior to the purchase. As a result, in January
1999, Tako exercised its rights and purchased 61,350 shares of unregistered
common stock for a total purchase price of $400,002. We granted Tako
registration rights in connection with this transaction.
In March 1999, we executed a secured promissory note with Tako under which
we may draw up to $5 million through December 31, 1999. The interest rate for
any amounts advanced under this agreement is 10%, payable monthly, and all
principal and any unpaid interest are due on March 25, 2000. The note is secured
by substantially all our assets. At May 11, 1999, no advances had been drawn on
this note. In connection with this transaction, we issued Tako a five-year
warrant to acquire up to 500,000 shares of unregistered common stock at an
exercise price of $11.00 per share. We have calculated the value of this warrant
using the Black-Scholes valuation model. The significant inputs we used in the
model were volatility of 0.6, expected life of three years, and a risk-free
interest rate of 4.5%. The value of this warrant has been estimated at $2
million, and has been recorded in Stockholders' equity and as a Prepaid loan
commitment fee. This fee is being amortized through non-cash charges to
operations through December 31, 1999.
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