NewKidCo International Completes Private Placement
Friday November 1, 1:26 pm ET
NEW YORK--(BUSINESS WIRE)--Nov. 1, 2002--NewKidCo International Inc. (OTCBB:NKCIF - News; TSE:NKC - News) announced today the completion of a private placement to Spinner Global Technology Fund ("Spinner"), of a secured convertible promissory note in the amount of US $1,000,000. Subject to receipt of regulatory and shareholder approval, the note will be convertible at the option of Spinner in Series C Shares at a conversion price of US $0.12 per share. The placement will also involve, subject to receipt of all necessary regulatory and shareholder approval, the purchase for cancellation of the 13,505,118 Series A Shares held by Spinner in exchange for approximately 3.085249977 Series C Shares for each Series A Share. The Series C Shares are convertible at the option of holder on a one for one basis into common shares of the company. Spinner Global Technology Fund was the only participant in this Private Placement.
The Private Placement is intended to improve the financial position of the Corporation.
NewKidCo will use the net proceeds from this private placement to help fund Working Capital, General Corporate Purposes and to move it ahead with certain of its key product lines for the upcoming holiday season and beyond.
About NewKidCo International Inc.
NewKidCo International Inc. (TSE:NKC - News; OTCBB:NKCIF - News), headquartered in New York City, New York, publishes children's video games based on popular licensed characters and brands, such as E.T. The Extra-Terrestrial(TM), Tom and Jerry(TM), Little League Baseball®, Dr. Seuss, Dragon Tales(TM), Dora the Explorer from Nickelodeon, Winnie the Pooh and Sesame Street®, for interactive entertainment gaming systems from Nintendo, Sony Computer Entertainment of America and Microsoft. The company publishes and distributes its product directly in North America, in Europe through its distribution partner, Ubi Soft Entertainment SA, and in Japan through Success Corp. NewKidCo titles have garnered critical acclaim and distinguished honors, including the PlayStation Choice and Nintendo Power Awards. Most recently, six NewKidCo games received the esteemed "approval" rating from the Parents' Choice Association. For more information please visit www.NewKidCo.com.
Forward-looking statements in the release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risk and uncertainties, including without limitation risks related to the Company's ability to raise additional financing, risks of intellectual property rights and litigation, risks in technology development and commercialization, risks in product development and market acceptance of and demand for the Company's products, risks of downturns in economic conditions generally, risks associated with competition and competitive pricing pressures, risks associated with foreign sales, risks associated with the sell-through of products in the sales channels, risks associated with customer concentration and other risks detailed in the Company's filings with the Securities and Exchange Commission.
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Contact:
NewKidCo International Inc., New York
Arthur Levine/Barry Fried (Investor Relations)
212/581-1555
212/265-1620 fax
Arthur@newkidco.com
or
Bender/Helper Impact
Brenda Ciccone (Public Relations)
310/477-4647, ext. 264
310/478-7914 fax
brenda_ciccone@bhimpact.com
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Source: NewKidCo International Inc. |
