THCG, Inc. Receives $5.0 Million in Equity Financing From Castle Creek Technology Partners
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NEW YORK--(BUSINESS WIRE)--Aug. 3, 2000--THCG, Inc. (NASDAQ:THCG),
a leading architect and builder of global Internet and technology
enterprises, today announced it has completed a private placement of
$5.0 million of Series A Convertible Preferred Stock with Castle Creek
Technology Partners LLC, a private investment fund focused primarily
on the technology sector.
The Preferred Stock will have an 8% dividend payable in cash or
equity and is convertible into THCG Common Stock at a fixed conversion
price of $5.039 per share at any time prior to December 29, 2000.
Thereafter, the conversion price will be based on market prices, also
subject to certain limits and conditions. The terms and conditions of
the private placement also provide for the Preferred Stock to be
redeemable for cash at any time over the three year term, subject to
premiums and certain other conditions. In addition, Castle Creek has
received a warrant to purchase 396,899 shares of Common Stock at an
exercise price of $5.039 per share. THCG has the right to require
conversion of the Preferred Stock and to redeem the warrant if its
Common Stock reaches certain price levels over a specified period of
time.
Joe Mark, Co-Chairman and CEO of THCG, Inc., stated, "Given the
tremendous opportunities we are seeing for capital to be employed in
the different areas of our business, both in Israel and the US, we had
a strong desire to increase our funding capabilities. This investment
by Castle Creek enhances our ability to work with leading
entrepreneurs with great technologies, to continue to create and
develop tier-zero businesses such as Zinook, and to further invest in
our operating divisions and our partner companies. We are pleased to
have raised this money from Castle Creek in such a difficult market
environment."
Tom Frei, Managing Director of Castle Creek, added, "This
transaction provides Castle Creek with the ability to participate in
the success of all of THCG's partner and portfolio companies. We see
value in THCG's ability to identify and nurture exciting, emerging
technology companies. Moreover, we believe the Company's impressive
mix of proven business creators, financial and technology experts,
along with its innovative approach to building Internet and technology
enterprises, give the Company a competitive edge in the Internet and
technology incubation and acceleration space. We look forward to a
successful relationship with THCG."
About THCG, Inc.
Based in New York City, THCG, Inc. is a leading architect and
builder of global Internet and technology enterprises that is rapidly
building a portfolio of partnership and fee-for-service activities.
Its incubation and acceleration efforts center around Web
technologies, wireless, communications, network security and supply
chain and customer relationship management sectors. In addition, the
Company, which is also pursuing e-Commerce and Web-content
transactions with a "bricks and clicks" focus, has equity positions in
several early-stage partner companies, including Convergence
MediaGroup, Inc. (www.cmg-us.com); ENJEWEL (www.enjewel.com); Global
Credit Services, Inc. (www.globalcreditservices.com); Globecom
Interactive, Inc.; IT Utility, Inc. (www.itutility.com); and Test
University, Inc. (www.testu.com).
THCG also holds investments in over 10 Internet and technology
businesses it acquired through direct investment, equity for services
or acquisitions, including iBeauty.com (www.ibeauty.com);
insci-statements.com, Corp. (NASDAQ:INSI, www.insci.com);
Marketplayer.com, Inc. (www.marketplayer.com); Passport New Media,
Inc. (www.yourownworld.com); RealTimeImage, Inc.
(www.realtimeimage.com); SoftWatch, Ltd. (www.softwatch.com); Sunshine
Media Corporation (www.bikini.com); TechOnLine, Inc.
(www.techonline.com); and webMethods, Inc. (NASDAQ:WEBM,
www.webmethods.com).
THCG shortly expects to complete the formation of THCG Giza Israel
as a THCG wholly-owned subsidiary. THCG Giza Israel will serve as the
Company's global technology "center of excellence" and is focused on
sourcing, screening and developing promising companies in the areas of
Broadband, Wireless, Internet Enabling Technologies and Telecom
Infrastructure.
For more information, please visit the Company's Web site at
www.thcg.com.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995: The statements contained in this release which are
not historical facts are forward-looking statements that are subject
to risks and uncertainties that could cause actual results to differ
materially from those set forth in or implied by such forward-looking
statements. These risks and uncertainties include the Company's entry
into new commercial businesses, the risk of obtaining financing, risks
associated with startup or early stage enterprises, the effect of
demand for public securities, activity in the secondary securities
markets, general economic, political and market conditions, and other
risks described in the Company's Securities and Exchange Commission
filings.
CONTACT: Continental Capital & Equity Corp., Longwood, Fla.
Dodi Handy, 407/682-2001
dodi@insidewallstreet.com
KEYWORD: NEW YORK INTERNATIONAL AFRICA/MIDDLE EAST
INDUSTRY KEYWORD: INTERNET E-COMMERCE SOFTWARE
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