INOW raises $16.0 MM through the issuance of preferred shares. It looks like the shares are convertible at an average price of approximately $5.33 per share.
biz.yahoo.com
Friday December 17, 8:00 am Eastern Time
Company Press Release
SOURCE: InfoNow Corporation
Soros Private Equity Partners, Putnam Funds and Stolberg Partners To Invest $16 Million in InfoNow
Capital Will Accelerate Product Development, Enable More Aggressive Investment in Sales and Marketing and Position Company for Nasdaq Listing
DENVER, Dec. 17 /PRNewswire/ -- InfoNow Corporation (OTC Bulletin Board: INOW - news) 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 |
