Starbase Corp. Announces Completion of $17.5 Million Equity Private Placement
September 11, 2000 07:59 AM Eastern Time
SANTA ANA, Calif.--(BUSINESS WIRE)--Sept. 11, 2000--Starbase Corp. SBAS , the leading provider of collaboration products for the creation and management of integrated code and content eBusiness applications, Monday announced the completion of a $17.5 million private placement.
Starbase plans to use the proceeds from this offering for general corporate purposes, including working capital, capital expenditures, acquisitions and equity investments in companies that provide strategic technological or marketing opportunities. SG Cowen Securities Corp. served as placement agent in connection with the sale of the equity securities. BayStar Capital, L.P. and an affiliate were the sole investors.
William R. Stow, III, president and CEO of Starbase, stated, "Strengthening our cash position will enable us to accelerate the execution of our growth plans and broaden our recognition in the marketplace as the leading provider of eBusiness collaboration solutions. More specifically, this private placement will give us expanded flexibility in structuring acquisitions and strategic investments which historically have been pure stock transactions. Strategic investments will enable us to achieve aggressive growth objectives while continuing to maintain our conservative budget and cost controls. We are also very pleased to establish a corporate finance relationship with an investment bank with the stature and reputation of SG Cowen."
"The StarTeam family of products has achieved a well-deserved recognition as a best-of-breed solution for eBusiness application development," stated Jeff Harmon, managing director and head of Technology Investment Banking at SG Cowen. "As the growth of eBusiness accelerates into the Internet, these new funds will significantly bolster Starbase's efforts in continuing to develop and market their unique integrated code and content management solutions to both traditional software engineering and modern Internet content development organizations."
The company issued 3,211,009 shares of common stock at a price of $5.45 per share. In addition, BayStar received 3-year warrants to purchase 642,201 shares of common stock at a price of $6.81.
About Starbase
Starbase is the leading provider of collaboration products for the creation and management of integrated code and content eBusiness applications. Collaboration is the simultaneous coordination, management and communication of geographically dispersed contributors of both code and content for eBusiness applications. With more than 1,450 StarTeam customers worldwide, our technology supports the continuous cycle of creating, linking and managing digital assets, which comprise complex eBusiness applications.
Starbase products enable users with differing technical and functional backgrounds to collaborate on the production of Web sites and eBusiness initiatives from multiple locations. Companies and organizations, including leading corporations such as Lucent Technologies, Intel, BMC Software, Motorola, PepsiCo, Seagate Technology, Hollywood Entertainment, eTour.com, Oxygen Media, and Ann Taylor have selected StarTeam to manage their eBusiness development projects.
Starbase has headquarters at 4 Hutton Centre Drive, Suite 800, Santa Ana, CA 92707. Tel: 714/445-4400. Fax: 714/445-4404. Visit Starbase's Web site at www.starbase.com.
Starbase and its product names are trademarks of Starbase Corp. All other product and company names herein are trademarks of their respective owners.
Forward-Looking Statements
When used in the preceding discussion, the words "believes, expects, or intend to" and similar conditional expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, (i) conditions in the general economy or the software industry, (ii) the timely development and market acceptance of products and technologies, (iii) competitive factors, (iv) demand for team productivity software products, (v) sell-through of products in the sales channel, and (vi) other risks described in Starbase Corp.'s SEC reports and filings.
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CONTACT: Starbase Corp., Santa Ana Ann Jones, (Investor Relations), 714/445-4440 ajones@starbase.com or Martha Ray, (Public Relations), 714/445-4531 mray@starbase.com |
