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(COMTEX) B: Platforms Wireless Bolsters Balance Sheet Chairman Conver
B: Platforms Wireless Bolsters Balance Sheet Chairman Converts Loan to Equity
At a Significant Premium to Current Share Price
LOS ANGELES, Jan 4, 2001 /PRNewswire via COMTEX/ -- Platforms Wireless
International Corporation, (OTC: PLFM), the developer of the revolutionary
Airborne Relay Communications "ARC System" for wireless voice and data
communications, announced today that Chairman William C. Martin Sr. has agreed
to convert his loan to the Company to an equity position at terms favorable to
the Company.
Charles B. Nelson, Sr. Vice President & CFO stated: "I am very pleased to
announce the retirement of this outstanding loan. It is important to note that
by converting Mr. Martin's loan to PLFM into equity, Mr. Martin will virtually
eliminate both the Company's total debt and Platform's negative Shareholders
Equity balance sheet positions as well as give the Company the benefit of a
conversion price that is significantly above the current market."
Mr. Martin has an outstanding loan to the Company of approximately $3 million,
which has been carried on the Balance Sheet as an outstanding debt. This loan
and its accrued interest will now be converted to equity. Mr. Martin was also to
receive a stock dividend as additional compensation for the loan. This issuance
has now been amended to terms more favorable to the Company.
Previous negotiations with Mr. Martin had addressed conversion of the loan at
the then-current market price of approximately $0.10 per share, and would have
represented an issuance of in excess of 30,000,000 shares. Under today's
agreement, Mr. Martin will retire the debt at a premium conversion price of
$0.25 per share, saving the Company in excess of 12 million shares. In addition,
the stock dividend provision granted at the time of the loan has also been
amended to lower the number of shares granted as a dividend for Mr. Martin's
extension of the original loan. All shares will be restricted under Rule 144
stock issuance regulations.
"Removing this liability, and eliminating the negative shareholders' equity from
our balance sheet, are important developments for the Company," added Mr.
Nelson. "Our Financial Statements for the second quarter ending December 31,
2001 will reflect this significant positive development."
About Platforms International
Platforms International Corporation, headquartered in Los Angeles, California,
is the developer and marketer of the revolutionary wireless communications
technology known as the Airborne Relay Communications "ARC" System, and its
family of Airborne, host infrastructures, the ZerOGravity AeroStructures(R).
Management believes that these significant advances in the field of Airborne
wireless communications technology, together with continuing technology
improvements and new developments, will provide an efficient, cost-effective,
all-broadband, voice and data communications alternative for augmenting,
replacing, and supplementing terrestrial wireline and cellular
telecommunications infrastructures, as well as high and low-earth orbiting
satellites -- at a savings in both cost and deployment time, as compared to
conventional systems. Platforms recently announced its first ARC System
Conditional Contract with AMERICEL, S.A., one of the leading cellular
telecommunications service providers in Brazil. Platforms can be found on the
Web, at: www.plfm.net .
Safe Harbor Act Disclaimer
Forward-Looking Statements -- The statements contained in this Press Release,
which are not historical facts, are "forward-looking statements," within the
meaning of Rule 175 under the Securities Act of 1933, and Rule 3b-6 under the
Securities Exchange Act of 1934, and as defined in the Private Securities
Litigation Reform Act of 1995, and such statements qualify for the Safe Harbor
protection afforded under such Acts. Forward-looking statements can be
identified by the use of forward-looking words, such as "believes," "expects,"
"may," "will," "should," "anticipates," or the negative thereof, or other
variations thereof, or comparable words, or by statements related to future
plans, strategies, or other business development activities that involve risks
and uncertainties. Management cautions the reader that "forward-looking
statements" including, without limitation, statements regarding Platforms
technology, products, marketing plans and strategies, markets for its products
and services, and expected, projected results of operations, are all
predictions, expectations, and anticipations. No assurances can be given that
such predictions, expectations, and anticipations will prove accurate and
correct, or that anticipated, projected future results will be achieved.
Numerous risk factors can cause actual results to vary materially from the
future results indicated, expressed, or implied in forward-looking statements.
Such risks and uncertainties include, but are not limited to Platforms' ability
to successfully market its products and services to new customers; the Company's
ability to obtain necessary financing to support corporate operations and
finance the acquisition of test equipment and systems; the Company's ability to
obtain required permits, licenses, and authorizations in a timely manner; the
Company's performance of a successful ARC System Demonstration in Brazil; the
ability of Service Providers to successfully market ARC System wireless
communications services to subscribers; the ARC System's capability to
cost-effectively and profitably penetrate higher-cost, rural area markets; and
the unknown impact of probable entry into the market by larger, better
capitalized competitors. Therefore, there can be no assurance that the
information indicated, expressed, or implied in the forward-looking statements
contained in this Press Release will prove to be accurate or correct, and future
events and actual results could differ materially from those indicated,
expressed, or implied in these forward-looking statements.
SOURCE Platforms Wireless International Corporation
CONTACT: William Martin, Jr. of Platforms Wireless International,
310-338-0637, or fax, 310-338-0268; or Susan Bolen, 914-332-6
14, or
Brad Meyer or Harvey Goralnick, 212-752-9445, all of FOCUS Pa
tners,
or plfm@focuspartners.com, for Platforms Wireless Internation
l
URL: platforms-intl.com
prnewswire.com
(C) 2001 PR Newswire. All rights reserved.
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KEYWORD: California
INDUSTRY KEYWORD: TLS
CPR
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