Yup! This looks pretty suspect. Funding by that "offshore" entity noted in the Bloomberg hit...er....research piece. This is alot of cookies to sell nothing, huh? What must LBCG be thinking?
New Visual Entertainment, Inc. Receives Financing Commitment For Up To $23 Million From Lilly Beter Capital Group, Ltd. Funding To Accelerate Development and Commercialization Of Company's New "Last Mile" Technology
SAN DIEGO, Sep 26, 2000 (BUSINESS WIRE) -- New Visual Entertainment, Inc.
(OTCBB: NVEI), a pioneer in the development of proprietary transmission
technology focused on delivering the ultimate "last mile" solution, announced
today that it has received a financing commitment from Lilly Beter Capital
Group, Ltd. (LBCG) that could result in up to $23 million in equity financing
for the Company. The terms and conditions of the straight equity private
placement provide for LBCG to purchase $5 million of the Company's common stock
in several tranches at a purchase price equal to 87% of the average market price
of the common stock over the five days preceding the closing of each tranche. In
addition, LBCG will receive a warrant giving it the right to purchase up to an
additional 3 million shares of the Company's common stock at an exercise price
of $6.00 per share. If the warrant were fully exercised, the Company would
receive $18 million in additional financing. Proceeds from the funding will be
used to accelerate development and commercialization of the Company's
proprietary transmission technology, currently scheduled for third party
evaluation in October. The closing of the transaction is expected to occur in
October and is subject to mutually acceptable documentation and approval of each
company's board of directors.
In other news, New Visual reported that it has formally terminated its
previously announced merger agreement with privately-held Intelecon Services,
Inc., a Dallas-based provider of business communications technology and
value-added services, in order to focus its resources on commercialization of
its "last mile" technology.
Ray Willenberg, Jr., Chief Executive Officer of New Visual, stated, "This
straight equity funding from Lily Beter represents a tremendous vote of
confidence in our development activities, which are beginning to gain
considerable momentum. The recent discovery of new innovations, which our
engineers believe could greatly enhance the marketability of our technology,
could create additional significant opportunities for the Company upon its
commercialization. We look forward to sharing details regarding these
development efforts and the results of the third party evaluation in the very
near future. With respect to our decision to terminate the merger with
Intelecon, management determined that we must remain singularly focused on our
development efforts. Any dilution of this focus is simply not prudent, nor is it
in the best interests of our valued shareholders. Nonetheless, we wish nothing
but continued success to Intelecon."
Rick Kosloske, President of Lilly Beter Capital Group, Ltd., added, "Lilly Beter
Capital Group typically provides debt financing on hard assets. Because of the
Company's transmission technology and our confidence in New Visual's CEO, Ray
Willenberg, and the team he has assembled, we are pleased to be making this
equity investment. We are committed to the continued development of the
Company's `last mile' technology."
About New Visual Entertainment, Inc.
New Visual is pioneering the development of a proprietary broadband transmission
technology with the mission to utilize existing copper telecommunications
infrastructure to deliver high data content to the home or office at VDSL
(52Mbps) data transfer rates. Through its New Wheel Technology, Inc. subsidiary,
New Visual is developing this technology, which would allow the bundling of
voice, video and data over existing copper telephone wires, eliminating the need
for fiber optic cable to the home or office. Its initial development efforts are
focusing on "Very High rate Digital Subscriber Line" (VDSL), and have
demonstrated results exceeding industry standards. New Visual's common stock is
traded on the Over-The-Counter Bulletin Board under the symbol NVEI.
With the exception of historical information contained in this release, this
release includes forward-looking statements made under the "Safe Harbor"
provisions of the Private Securities Litigation Reform Act of 1995. These
statements involve risks and uncertainties that could cause actual results to
differ materially from those in the forward-looking statements, including but
not limited to the following: product development difficulties; market demand
and acceptance of products; the impact of changing economic conditions; business
conditions in the internet, computer, and 3D film and video industries; reliance
on third parties including potential suppliers, licensors and licensees; the
impact of competitors and their products; risks concerning future technology;
and other factors detailed in this release and in the Company's Securities and
Exchange Commission filings.
CONTACT: Continental Capital & Equity Corporation, Longwood, Fla.
Dodi B. Handy, 407/682-2001 |
