Now it's been diluted
FastComm Raises Five Million Dollars Via Regulation D Financing
STERLING, Va.--(BUSINESS WIRE)--April 10, 1997--
Private Convertible Debenture Offering of $5 Million to be used for
expansion of Worldwide Sales, Marketing and Product Development
Activities
FastComm Communications Corp. today announced the closing of a $5,000,000 private convertible debenture offering, with institutional investors via Regulation D. The debentures may be converted into convertible preferred stock by the Company. The Company plans to exercise this conversion option if the preferred shares are authorized at its upcoming annual shareholders' meeting. The conversion price will be initially at market subject to adjustments depending on the length of the pre-conversion holding period. Both the debenture and related preferred stock will earn a 5% dividend payable in common stock of the Company. Janney Montgomery Scott and Susquehanna Financial Group served as placement agents for the transaction.
"This financing reflects confidence in our strategy to provide corporate customers with the premier Legacy to LAN networking solution. It provides additional resources which can speed our product development plans, and enable more rapid growth of sales channels in North America, Latin America, Europe, the Middle East and the Pacific Rim," said Peter C. Madsen, FastComm president. Under the terms of the agreement, preferred shares held more than six months will accrue warrants to purchase additional common shares at a premium over the price of the stock at the date of conversion. Additional warrants may be issued provided the investors hold the convertible securities for a period greater than one year.
For more information, or to request a data sheet of any FastComm product, phone 703-318-7750; fax to 703-787-4625; Email to info@fastcomm.com; or visit FastComm on the World Wide Web at fastcomm.com. Forward looking statements are made in this release pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward looking statements are subject to risks and uncertainties, including, without limitation, the timing of new announcements or introductions by the Company and its competitors, the hiring and retention of key employees, competitive pricing pressures, dependence on third party for components and products, and general economic conditions in the United States and international markets and the risk factors detailed from time to time in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission.
FastComm Communications Corp. (FSCX, NASDAQ) designs, manufactures, and sells access products for public and private digital networks. Its products include Packet and Frame Relay concentrators, Voice and Data FRADs, and WEB.router(tm) Internet access routers; T-1/E-1 ATM network access equipment; Frame Relay line testers to speed installations; leased line and Switched 56 CSU/DSUs; SuperView(tm) data switches for managing multiple remote async devices; and a family of high speed data compressors.
FastComm, stylized logo, WEB.router, and SuperView are trademarks of FastComm Communications Corp. All rights reserved. All other trademarks are property of their respective owners. |
