QueryObject to Redeem Warrants; Company to Seek Stockholder
Approval for Reverse Stock Split
Business/Technology Editors
ROSLYN HEIGHTS, N.Y.--(BUSINESS WIRE)--Dec. 14, 1999--QueryObject
Systems Corporation (OTC:QUOB)(BSE:QOB) today announced that it is
proposing to redeem for $.01 per warrant the remaining outstanding
warrants issued in connection with its Private Placement of Series A,
B and C Convertible Preferred Stock. In lieu of redemption, the
holders of the warrants may exercise them in accordance with their
terms. If all presently outstanding warrants are exercised, the
Company would receive proceeds of approximately $4.8 million. Complete
exercise would bring total primary shares to approximately 16 million
from a pre-call level of approximately 9 million. Fully diluted
shares, including Preferred Stock, remaining warrants, options and
employee stock options are currently 38.7 million.
In a further streamlining of the capital structure, the company
also announced that it will seek stockholder approval of a 1 for 3
reverse stock split at a special meeting to be called by late January
2000. Submission of the proposal to stockholders is subject to SEC
review of the related proxy materials.
"As a result of the private placement completed in August,
exercise of previous warrants and the anticipated exercise of
substantially all of the remaining warrants, we expect our balance
sheet at year end to be substantially improved over the close of
1998," said Daniel Pess, Chief Operating and Financial Officer. "We
currently believe that this new cash, combined with the company's
increasing revenue and lower operating losses, should allow the
company to operate without the continued pressure of raising capital
for its core business."
I really hate reverse splits. Can't think of one that proved fruitful.
Jack |
