Yeah some more great news, massively dilutive financing at $5 (3 to 1 washout) is resulting in the new investors arbirtaging out the difference (ie the common stokc goes from $15 to $7, see ya!): DENVER, Dec. 17 /PRNewswire/ -- InfoNow Corporation (OTC Bulletin Board: INOW) today announced an agreement with a group of
institutional investors for a $16 million equity investment in the company. The investor group includes affiliates of Soros Private Equity Partners LLC, two investment funds advised by Putnam Investments, and Stolberg Equity
Partners LLC, an affiliate of Stolberg, Meehan & Scano II, L.P.
Under the terms of the financing, the investor group will purchase 800,000
shares of preferred stock from the company. The preferred stock is priced at
$20.00 per share and is convertible into approximately three million common
shares at the option of the purchaser. After the first anniversary of the
closing date, the preferred stock will automatically convert if certain stock
performance criteria have been met.
The financing is to be completed in two rounds. InfoNow expects to
complete the first round of five million dollars on or about December 31,
1999. The second closing for the remainder of the investment is expected to
be on or about January 24, 2000. The investment is contingent upon the
completion of legal, financial and other due diligence and the negotiation of
final documentation.
"We are excited about the opportunity to bring strong financial partners
and additional investment capital into InfoNow at this time," stated Michael
Johnson, InfoNow's Chief Executive Officer.
"Our vision is to become the platform to link the Internet presence of
major manufacturers with the local presence of their third party channels.
The additional capital will enable us to accelerate our product development,
marketing and sales activities, and expand our operations and client service
resources. It should also ensure that we meet all the quantitative
requirements for a Nasdaq listing, and may allow us to more quickly qualify
for a Nasdaq National Market listing," added Johnson.
About InfoNow Corporation
InfoNow enables channel dependent companies to use the power of the
Internet to close more sales through their local channel partners. InfoNow's
services maximize channel partner success by providing referrals, leads and
eCommerce capabilities to the channel partner(s) best aligned to close the
sale. InfoNow outsources these services over the public Internet, private
intranets and extranets to clients in fifteen countries, including eight of
the largest global computer and networking firms, six of the largest banks in
North America and other industry leaders like Allstate, American Airlines,
FedEx, Lucent Technologies, Maytag, Motorola, Sony, Transamerica, UPS and
Visa. For more information, please visit the company's Web site at
www.infonow.com.
InfoNow is a registered trademark of InfoNow Corporation. All trademarks
or registered trademarks are the property of their respective owners.
Except for factual and historical information contained herein, matters
discussed in this release, including statements as to the Company's ability to
consummate the described financing in the amounts and on the terms stated, the
Company's ability to accelerate activities and expand operations and the
Company's ability to qualify for a Nasdaq listing, are forward-looking
statements that involve risks and uncertainties, and actual results may be
materially different. Factors that could cause actual results to differ
include the risk that sales of the Company's services may not develop as
expected and the risk that the Company may not be successful in forecasting
and meeting customers' demands for its services. The Company may not be able
to obtain a listing on the Nasdaq stock market or successfully complete its
planned financing on the terms that it expects. Additional information on
factors that could cause actual results to differ materially from
forward-looking statements made in this release are contained in the Company's
reports on Form 10-KSB and 10-QSB filed with the Securities and Exchange
Commission.
SOURCE InfoNow Corporation
-0- 12/17/1999
/CONTACT: Kevin Andrew, CFO of InfoNow Corporation, 303-293-0212,
kandrew@infonow.com/
/Web site: infonow.com
(INOW)
CO: InfoNow Corporation; Soros Private Equity Partners LLC; Putnam
Investments; Stolberg Equity Partners LLC |
