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Milestone Scientific, Inc. Closes $725,000 Private Placement
2/2/00 2:27:56 PM
LIVINGSTON, N.J., Feb 2, 2000 (BUSINESS WIRE) -- Milestone Scientific Inc. (AMEX: MS) today announced that it had concluded a $725,000 private placement of 10% Senior Secured Promissory Notes due June 30, 2001 and Warrants to purchase 103,571 shares of Milestone Common Stock with Cumberland Partners, other investment funds managed by or affiliated with Cumberland Associates, Strategic Restructuring Partnership L.P., a former principal of Cumberland Associates, two officers of the Corporation and an affiliate of one of its directors. The Notes are secured by all present and future inventories of Milestone and are prepayable out of a portion of the proceeds generated by sales of "Wand" units. The Warrants are exercisable at prices increasing from $1.75 per share in the first year to $7.00 per share in the fifth year, subject to anti-dilution protection in the event of stock dividends and certain capital changes. Purchasers of the Warrants were granted rights to participate in certain future security offerings by Milestone.
In a related transaction, holders of Milestone's 3% Convertible Notes have agreed to convert all $2,250,000 of such notes into common stock at an $1.25 per share.
Mitchell Kuhn, President and Chief Operating Officer of Milestone, stated that he was pleased at the confidence in Milestone and faith in "The Wand" technology shown by Cumberland Associates, already one of Milestone's major stockholders. The proceeds of the offering will be used by Milestone as additional working capital.
Milestone is the developer, manufacturer and marketer of The Wand (tm), a computer controlled injection system. This precision metered, local anesthetic injection enables virtually painless injections to be administered consistently.
This releases contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the Company's control, which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the Company's periodic filings with the Securities and Exchange Commission.
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