Wednesday January 17, 7:01 am Eastern Time
Press Release
STAR Telecommunications Secures $25 Million Equity Commitment
SANTA BARBARA, Calif.--(BUSINESS WIRE)--Jan. 17, 2001--STAR Telecommunications Inc. (Nasdaq:STRX - news) today announced that it has secured a commitment from Gotel Investments Ltd. to acquire $25 million of STAR Common Stock over a six-month period, completing the first phase of STAR's new financing program.
STAR intends to employ this new equity capital to finance operations and reduce outstanding vendor obligations. Pursuant to its investment commitment, Gotel Investments will purchase registered shares of common stock at a discount to the volume-weighted average price over an agreed-upon pricing period.
Additionally, in connection with its investment commitment, Gotel will have the right to appoint two members to STAR's Board of Directors. STAR will file a registration statement with the Securities and Exchange Commission to register the shares of STAR common stock purchased by Gotel Investments pursuant to its commitment.
``This new capital represents a strong endorsement of our business plan and the new management team,'' said Brett Messing, chairman and chief executive of STAR. ``We hope that this action goes a long way towards assuring our vendors, customers, partners and shareholders of our ability to navigate through this difficult time in our corporate history.''
About STAR Telecommunications
STAR Telecommunications provides global telecommunications services to consumers, long-distance carriers, multinational corporations and Internet service providers worldwide. STAR provides international and national long-distance services, international private line, prepaid calling cards, calling cards, dial-around services and international toll-free services. Visit STAR at www.startel.com.
Except for the historical information contained herein, this news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21B of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. STAR's future actual results could differ materially from the forward-looking statements discussed herein. A list of the factors that could cause actual results to differ materially can be found in the documents that STAR files with the SEC including those contained in STAR's prospectus and the Form 10-K for the period ended Dec. 31, 1999.
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Contact:
STAR Telecommunications
Tim Sylvester, 800/899-1962 (Investor Relations)
ir@startel.com |
