Starbase Announces $3.0 Million Private Placement
November 21, 2001 08:18:00 AM ET
SANTA ANA, Calif.--(BUSINESS WIRE)--Nov. 21, 2001--Starbase Corp. SBAS, the leading provider of end-to-end collaborative products for both the development and management of content and code for enterprise and e-business applications, today announced the company has entered into an agreement with several institutional investors to complete a $3.0 million private placement.
Starbase plans to use the proceeds from this offering for general corporate purposes, including working capital expenditures.
William R. Stow, III, president and CEO of Starbase, stated: "During the last month the company received term sheets representing more than $10 million in various forms of financing, including opportunities with industry partners.
"This financing enables us to continue the momentum of our business operations and positions our company to more efficiently execute on our business plan. We are pleased with the confidence that these investors have shown in our company, it validates the merits of our business model."
Continued Stow: "Until our share price returns to the higher levels that we believe more appropriately reflects the value of the company, we will give the highest priority to future funding options that do not require equity financing, such as from strategic partnerships with industry leaders.
"Selective funding when it is required will enable us to achieve our growth objectives while continuing to maintain our conservative budget and cost controls."
The private placement consists of convertible debentures that mature in three years and bear interest at 7%. Each debenture is convertible into common stock at the lesser of $0.594 or 80% of the average of the five lowest closing bid prices of the common stock for the 10 day trading period prior to conversion.
The purchasers will receive warrants to purchase 2,525,253 shares of common stock at an exercise price of $0.6534. The company will also file a registration statement to register the common stock issuable upon conversion of the debentures and the exercise of the warrants.
About Starbase
Starbase is the leading provider of end-to-end collaborative products for both the development and management of integrated content and code for enterprise and e-business applications. Collaboration is the simultaneous coordination, management and communication of geographically dispersed contributors of both code and content for e-business applications.
With 3,500 Starbase customers worldwide, the company's technology supports the continuous cycle of creating, linking and managing digital assets, which comprise complex e-business applications. Starbase products enable users with differing technical and functional backgrounds to collaborate on the production and management of Web sites and e-business initiatives from multiple locations.
Companies and organizations, including leading corporations such as Chase Bank, Dell Computer, Lucent Technologies, Motorola, PepsiCo and Seagate Technology have selected Starbase products to manage their e-business development projects. Deloitte & Touche named Starbase to the prestigious "2001 Orange County/San Diego Technology Fast 50" program, a ranking of the 50 fastest growing technology companies in the area.
Starbase has headquarters at 4 Hutton Centre Drive, Suite 900, Santa Ana, Calif., 92707. Tel: 714/445-4400. Fax: 714/445-4404. Visit Starbase's Web site at www.starbase.com.
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.
Note to Editors: Starbase and its product names are trademarks of Starbase Corp. All other product and company names herein are trademarks of their respective owners.
Contact Information:
Starbase Corp., Santa Ana
Doug Norman, 714/445-4445
Doug.Norman@starbase.com
or
Nick Kavadellas, 714/445-4440
Nick.Kavadellas@starbase.com |
