Corel Announces $15-Million Bought Deal
CCN Disclosure - May 25, 2000 19:39
OTTAWA, CANADA--Corel Corporation (NASDAQ: CORL, TSE: COR) today announced that it has entered into a "bought deal" agreement with Canaccord Capital Corporation to issue and sell common shares of the corporation for gross proceeds of Cdn $15 million. The agreement also includes an option for an additional Cdn $7.5 million at Canaccord's discretion, as well as an additional Cdn $7.5 million upon the mutual agreement of Canaccord and the company, increasing the potential size of the deal to Cdn $30 million. The number of shares and the price will be determined based on a per share price of an amount equal to 90 per cent of the average closing price for the common stock on the TSE for the four trading days following today.
The transaction is subject to the receipt of all necessary regulatory and stock exchange approvals and to the execution of definitive documentation. Corel will be filing a preliminary prospectus qualifying the common shares forthwith. The common shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Act"), and may notbe sold or offered for sale in the United States or otherwise distributed in the United States, except in reliance on available registration exemptions.
In the event a final prospectus is not filed within the 10 business days following the preliminary filing, a half warrant will be issued to the purchasers of the common shares, each whole warrant entitling the purchaser to acquire an additional common share at the average closing price as noted above within a 12-month period.
Corel intends to use the net proceeds of this offering for generalcorporate purposes and to effect a cost-savings plan, details of which the company expects to announce shortly.
"This financing package was selected from the many offers Corel recently received after careful consideration of the company's current forecasted needs," said John Blaine, chief financial officer and executive vice-president of finance at Corel Corporation.
"Contrary to much of the recent media speculation, Corel is, and will continue to be, an active and dynamic member of the local high-tech community and the industry as a whole," said Dr. MichaelCowpland, president and chief executive officer of Corel Corporation. "Having secured this source of financing, we can now turn our full attention towards executing our short and long-term strategy, which will include an aggressive cost-savings plan.
"Securing this financing is one step in a comprehensive plan by Corel to address its finances. As previously announced, Corel is also completing plans to align its cost structure to support current revenue expectations and long-term goals. Corel expects toachieve cost savings of approximately US $40 million on an annualized basis.
Corel Corporation
Corel Corporation is an internationally recognized developer of award-winning business productivity, graphics and operating systemsolutions on the Windows(R), Linux(R), UNIX(R), Macintosh(R) and Java(TM) platforms. Corel also develops market-leading, Web-based solutions including applications, contents, e-commerce and online services. For access to these services and more information go to www.corel.com or www.corelcity.com. Corel is headquartered in Ottawa, Canada. Corel's common stock trades on the NASDAQ Stock Market(SM) under the symbol CORL and on the Toronto Stock Exchangeunder the symbol COR.
This press release contains statements that are forward looking asthat term is defined by the United States Private Securities Litigation Reform Act of 1995. These statements are based on current expectations that are subject to risks and uncertainties. Actual results will differ due to factors such as shifts in customer demand, product shipment schedules, product mix, competitive products and pricing, technological shifts and other variables. Readers are referred to Corel's most recent reports filed with the Securities and Exchange Commission.
Corel and the Go further logo are trademarks or registered trademarks of Corel Corporation or Corel Corporation Limited. Linux is a registered trademark of Linus Torvalds. All other products, fonts, company names and logos are trademarks or registered trademarks of their respective owners.
FOR FURTHER INFORMATION PLEASE CONTACT:
Corel Press Contacts:
Catherine Hughes
(613) 728-0826 ext. 1659
catherineh@corel.ca
or
John Hladkowicz (Investor Relations)
(613) 728-0826 ext. 1194
johnh@corel.ca |
