Fonix Announces Financing Agreement
June 27, 2002 4:59:00 PM ET
SALT LAKE CITY, June 27 /PRNewswire-FirstCall/ -- Fonix Corporation (OTC Bulletin Board: FONX), a leading provider of natural-user interface technology for wireless and mobile devices, Internet and telephony systems, and vehicle telematics, announced today that it has entered into a new $20 million financing agreement to provide additional working capital for the company. The financing is structured as an equity line of credit, which allows Fonix to draw as needed desired amounts and put to the equity line investor shares of Fonix registered common stock in satisfaction of the draws. Fonix has filed a Form S-2 registration statement with the Securities and Exchange Commission to register 150 million shares to be available under the equity line.
"This additional equity line is further evidence that private institutional investors understand and believe in the Fonix speech solutions, markets, products, partners, and customers," said Roger D. Dudley, Executive Vice President and CFO. "While we continue to pursue alternative sources of debt and equity capital, this financing agreement provides sufficient cash to support the Company's present operating needs at current levels."
About Fonix Corporation
Fonix Corporation (OTC Bulletin Board: FONX) is a leading provider of natural-user interface technology solutions for wireless and mobile devices, Internet and telephony systems, and vehicle telematics. Leading chip manufacturers, independent software and hardware vendors, and Internet content and service providers incorporate Fonix technology to provide their customers with an easier and more convenient user experience. Fonix products, including Text-To-Speech (TTS), Automatic Speech Recognition (ASR), and Handwriting Recognition (HWR), provide the most natural communication solutions available. For additional information, visit www.fonix.com , or contact a Fonix representative at (801) 553-6600.
Note: The statements released by Fonix Corporation that are not purely historical are forward-looking within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995, include statements regarding the Company's expectations, hopes, intentions, and strategies for the future. Investors are cautioned that forward-looking statements involve risk and uncertainties that may affect the Company's business prospects and performance. It is important to note that the Company's actual results could differ materially from those in such forward-looking statements. Risk factors include general economic, competitive, governmental, and technological factors as discussed in the Company's filings with the SEC on Forms 10-K, 10-Q and 8-K. The Company does not undertake any responsibility to update the forward-looking statements contained in this release.
Fonix is a registered trademark of Fonix Corporation. OMAP is a trademark of Texas Instruments. All other trademarks or registered trademarks are the property of their respective owners.
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