VCSY.......NEWS UPDATE! *****FLASH******
Avenel Financial Group Completes $10,000,000 Equity Financing in Vertical Computer Systems, Inc.
February 25, 2000 08:48 AM
LOS ANGELES--(BUSINESS WIRE)--Feb. 25, 2000--Vertical Computer Systems, Inc. VCSY announced today that it has received a second payment of $6,500,000 to complete the $10,000,000 in equity funding commitment from Charlotte, North Carolina-based Avenel Financial Group (Avenel) through the sale of its Series "A" Preferred Stock. On Friday, February 11, 2000, Vertical Computer Systems announced that it had received a commitment letter from Avenel to provide them with a $2,500,000 to $10,000,000 equity funding through the sale of its Series "A" Preferred Stock. According to the terms of the commitment letter, adjusted on a post-split basis, the Company will make available 50,000 shares of its Series "A" Preferred Stock at a price of $200 per share with each preferred share convertible into 500 shares of the Company's restricted common stock. As a result of the Company receiving the $10,000,000 cash investment, the Company is issuing warrants to Avenel to purchase 1,000,000 restricted common shares of the Company at an exercise price of $1.00 per share. The preferred shares do not have any registration rights, and that they may not be converted into common stock until February 21, 2001.
Richard Wade, president, stated, "With the receipt of $6,500,000, Avenel has completed its $10,000,000 equity infusion commitment. As a result, our current cash position is in excess of $10,000,000. With this recent equity injection, we believe we can now pursue regional internet carriers as well as complementary technologies to enhance our products to actively compete in the international.com marketplace."
About Avenel Financial Group
Avenel Financial Group is a private venture capital group whose recent investments include Summus, the majority owner of the publicly held High Speed Net Solutions, Inc. and zebramart.com, Inc., ZMRT .
About Vertical Computer Systems:
Vertical Computer Systems, Inc. is a multi lingual portal provider, and e-commerce solutions company, based in the United States. The Company provides a full range of Internet services that include building e-commerce solutions nationally and internationally, distributing content via its multi lingual portal network ; and Internet Services thepostmaster.net). Through its majority-owned subsidiary, Externet World, Inc., the Company provides online shopping services and proprietary online gaming software . Vertical Computer Systems is committed to building e-commerce communities allowing the development of the Internet in the Americas, Europe, Asia and Pacific Rim.
This material was disseminated by The Hawke Group, Inc. ("Hawke") for the Company discussed herein, based upon Company supplied information or other sources believed to be reliable. The information is not guaranteed by Hawke for accuracy or to be all inclusive. Forward-looking statements in this release are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties and actual results could differ from those discussed. This material is information only and is not an offer or solicitation to buy or sell the securities. Hawke, its affiliates, and/or its officers, directors and employees may from time to time have a position in these securities. Vertical Computer Systems, Inc. has retained The Hawke Group as a Financial Public Relations Consultant for the option to purchase 30,000 shares of restricted stock at .05 per share subject to split correction.
CONTACT: The Hawke Group, Inc., Fort Lauderdale Broker Contact: Scott Phillips, 954/564-7114, Fax 954/564-9848 Visit our website at www.hawkegroup.com or Investor Contact: Mandel Consulting Cynthia Mandel, 954/973-3493, Fax 954/973-3558 or Avenel Financial Group Mike Pruitt, Phone 704/341-9856; Fax: 704/341-7961
|
