NEWS!!
Company Press Release
Centraxx Completes $18 Million Private Placement
LAS VEGAS--(BUSINESS WIRE)--July 13, 2000--Centraxx Inc. (OTCBB:CNXX - news), a wireless and location technology innovator, has successfully completed an $18 million Private Placement.
The proceeds will be utilized to deploy networks in Ontario, Canada and Southern California and to support sales and marketing plans in those areas as well for general working capital purposes.
Under the terms of the financing agreement, Centraxx may draw down up to $1.5 million per month during a twelve consecutive month period, subject to specific draw down conditions. The share issuance price for each draw down is to be based on the average trading price of Centraxx's common stock during the applicable 22-trading day period that precedes the closing of each draw down, discounted not less than 8% and not more than 13% from the volume weighted average price during that period, depending on which market Centraxx's common stock is listed or quoted. Centraxx may commence the draw downs once it has filed an S-1 registration statement with the Securities and Exchange Commission and it has been declared effective.
``This financing enables us to move from the development stage to the revenue generation stage,'' stated Centraxx Chairman and CEO, Michael Ivezic. ``And we expect that the amount should prove sufficient for us to execute our business plan. It will provide us with the ability to respond to new opportunities. We expect that dilution will be minimized because the structure of the financing allows us to draw funds as needed, and at prices related to market conditions. This is obviously a very important achievement for Centraxx and our stockholders.''
About Centraxx Inc.
Centraxx Inc. is a wireless data communications company currently focusing on providing location technology solutions. Centraxx has a patent pending RF land-based system that it intends to deploy in a network configuration in key markets across North America. Centraxx UNI-POINT(TM) technology is capable of providing high-speed, two-way data transfer and single point tracking and locating information. Over time, this proprietary, high capacity network will facilitate the wireless transfer of data for a wide range of products and applications.
Centraxx will first introduce an automotive application, the AutoRescue(TM) vehicle tracking and recovery system with AutoRescue PLUS(TM) roadside and emergency notification and LifeLink(TM) automatic collision notification. Rollout is expected to commence in Southern Ontario, Canada in the fourth quarter this year. This will be the world's first vehicle tracking system combining high accuracy, self-arming reliability and affordability.
More information regarding Centraxx and its products and services can be found on the World Wide Web at www.centraxx.com.
Forward-looking statements in this release are made pursuant to the ``safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, acceptance of the Company's products, increased levels of competition, new products and technological changes, the Company's dependence upon third-party suppliers, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.
(The information in this release has been neither approved nor disapproved by any regulatory body.) |
