Billserv Builds Bridge to Profitability, Closes $2.5 Million in Private Funding
SAN ANTONIO, November 29, 2001 - Billserv, Inc.
(NASDAQ: BLLS), the leading electronic bill
presentment and payment (EBPP) Outsourced
Solution Provider today announced it has
successfully completed a $2.5 million private
equity offering at a premium to market. The
offering was arranged through Investec PMG
Capital.
"This equity placement, coupled with the
attainment of future revenue goals and the
continued reduction of our cash burn rate through
management of our controllable expenses, provides
Billserv with the additional capital necessary to
achieve forecasted profitability," stated Terri
Hunter, executive vice president and CFO of
Billserv. In addition to bridging our path to
profitability, this funding represents a balanced
effort to access available risk capital while
protecting shareholder valuation."
"The ability to raise capital at a premium to
existing market pricing in these tight financial
markets and uncertain times further validates our
company's business model and financial progress.
We are very proud of the support that investors
continue to show for Billserv as we remain focused
on new biller signings, customer implementations
and leading marketing initiatives which will lead to
higher adoption rates," said Michael Long,
chairman and CEO of Billserv.
Billserv now has 89 signed billers and 72 are in a
production environment stage with the remaining
17 in various stages of implementation. Billserv's
customer base totals more than 3.1 billion paper
bills annually, which equates to 15.5% of all paper
bills produced in the United States each year.
About Billserv, Inc.
Billserv, Inc. is the leading electronic bill
presentment and payment Outsourced Solution
Provider, delivering comprehensive, cost-effective
solutions for presenting and servicing consumer
bills for payment via the Internet. As part of an
integrated EBPP solution, the company also
provides market-leading Internet customer care
and direct marketing applications. Billserv
consolidates customer billing information and then
securely delivers it to aggregators and to the
client's own payment site, hosted by Billserv. The
company has relationships with all major EBPP
aggregators, including CheckFree, Spectrum,
MasterCard RPPS, Paytrust, Metavante and
BillingZone, giving companies and customers the
widest array of Web sites from which to deliver,
view, pay and manage bills. For additional
information, visit billserv.com or call
(210) 402-5000.
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.
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