IPVoice Communications Inc Announces $3 Million Investment to Support 2004 Forecast of $50 Million Revenue Run Rate
Wednesday April 28, 10:03 am ET
Investment Lead by Innoprise Fund on Terms Intended For Long-Term Investment Horizon
DALLAS--(BUSINESS WIRE)--April 28, 2004-- IPVoice Communications, Inc. (OTCBB:IPVO - News) today announced a $3 million investment into the Company lead by the Innoprise Fund. The investment will fund organic growth initiatives intended to support the recently announced increase in the company's 2004 revenue forecast to a revenue run rate of $50 million by the end of 2004. Three million shares of restricted stock will be issued in conjunction with the investment.
"Small, managed periodic investments are a key element of the IPVoice strategy," commented Philip Verges, CEO of IPVoice. "We are working to time investments that will support the Company's growth goals, but only bring in an amount we believe the capital structure of the Company is prepared to support at the time. This balance of investment to growth minimizes dilution as we build a company with cash flow and emerging technology investment."
Mr. Verges continued, "We are also working to improve the terms of each subsequent investment. Our investment quality is improving and the terms of our investments should likewise improve. As the risk associated with an investment declines, the premium in terms of discount or interest should also decline. With a reduced discount or interest rate, the length of the investment should also increase. This recent investment lead by Innoprise is in line with the improving quality of the IPVoice opportunity."
About Innoprise Fund LLP
The Innoprise Fund LLP was formed to support IPVoice's unique merger and acquisition strategy. The Innoprise Fund LLP has signed $11 million in total subscriptions to date toward an overall goal of $20 million. The Innoprise Fund has been established independent of IPVoice to provide financing to IPVoice emerging technology subsidiaries and partners, therefore minimizing the necessity for dilution in IPVoice's capital structure.
About IPVoice Communications Inc.
IPVoice is a six-year-old company that has reported as a research and development concern for most of its history. In 2002, IPVoice launched a new business plan, which has resulted in the Company posting six consecutive profitable quarters and establishing an annualized $15 million in revenue. The Company is actively acquiring early-stage proprietary technology companies and financially distressed systems integration companies in specific global markets. In 2003, IPVoice acquired Infotel Technologies in Singapore and IP Global Voice, led by CEO Peter Geddis, a former Executive Vice President and Chief Operating Officer of Qwest Communications (NYSE:Q - News). The Company recently acquired Medical Office Software Inc. diversifying its communications technology offering into the healthcare industry. RKM IT Solutions of Caracas, Venezuela was also recently acquired as IPVO's entry into the Latin American market.
This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to the risks inherent in the integration of Infotel Technologies into IPVoice Communications, Inc business, the ability of IPVoice to restore and stabilize the client base of Infotel and re-establish relationships with key suppliers, the development and market acceptance of the products and services of the combined companies, demand for the telecommunication and other products and related services, domestic and foreign government spending, budgetary and trade policies, economic and political changes in the domestic and international markets where the Company competes, successful deployment of advanced technologies, competitive product and pricing pressures as well as other risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.
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Contact:
IPVoice Communications, Inc., Dallas
Investor Relations, 972-386-3372 ext. 211
ir@ipvoice.com
www.ipvoice.com
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