CAMBRIDGE, Mass.--(BUSINESS WIRE)--June 26, 1997--BioSafe International Inc. (NASDAQ:BSFE), an innovative solid waste management company, announced that it has completed a private placement of approximately $9 million of Series A convertible preferred stock and that it will use the funds to retire debt, undertake acquisitions and for general corporate purposes. In addition, BioSafe announced that a single, new institutional investor has taken a majority of the private placement and that several existing major investors in the company have participated in the financing. According to Philip Strauss, BioSafe's chairman, president and chief executive officer, "This financing completes BioSafe's successful turnaround and positions the company to take advantage of the significant opportunities in the solid waste management industry."
"Since BioSafe changed management in March 1996, the company has taken decisive steps to streamline operations, improve profitability and focus on developing an integrated solid waste management company, involving landfills, hauling operations and transfer stations," according to Strauss. He said, "The completion of this financing shows renewed investor confidence in BioSafe and its business strategy." As part of its business strategy, BioSafe will use its patented landfill remodeling process as a competitive advantage to secure landfill capacity.
The preferred stock was sold at a price of $100 per share, bears an 8 percent annual dividend, and is convertible into common stock at a conversion price of $0.2815 per share of common stock, which conversion price may be reset to a lower conversion price upon the occurrence of certain events. The dividend is payable in cash or in additional shares of preferred stock at the company's option and is subject to adjustment after three years.
As a result of the sale of the preferred stock, BioSafe International now has approximately 49.7 million shares of common stock outstanding or reserved for issuance upon the conversion of the preferred stock. The company is currently considering the sale of additional shares of the preferred stock on the same terms through June 30, 1997. The company has filed a current report on Form 8-K with the Securities and Exchange Commission setting forth further details with respect to the financing.
Certain of the above statements may be forward-looking statements that involve risks and uncertainties. In such instances, actual results could differ materially as a result of a variety of factors including competitive developments and other risk factors listed from time to time in the company's Securities and Exchange Commission reports.
CONTACT:
BioSafe International
Bob Rivkin, (617) 497-4500
KEYWORD: MASSACHUSETTS
INDUSTRY KEYWORD: ENMED ENVIRONMENT
BW1307 JUN 26,1997
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Doug,
Your source of news is obviously right on the money! (pun intended)
Would be interested in comments. This looks like a watershed event for
the company to me. |
