Friday September 19 8:03 AM EDT
Company Press Release
H.E.R.C. Products Announces the Closing of a $500,000
Debt Financing
PHOENIX--(BUSINESS WIRE)--Sept. 19, 1997--H.E.R.C. Products Incorporated (NASDAQ
Small Cap: HERC) announced today the closing of a $500,000 debt financing with InterEquity
Capital Corp. of New York.
The loan will be issued to the company in two advances of $250,000. The first advance at the
closing and the second advance when the company has met certain contract and financial goals. The
interest rate on the loan is 14% with payments to begin six months from the closing. In connection
with the first advance, the company issued to InterEquity two warrants, each to purchase 62,500
shares of common stock at $1.18 and $1.475, respectively. The drawing of the second advance,
will trigger the company's obligation to issue two additional warrants each to purchase an additional
62,500 shares at exercise prices equal to the average of the 30-day closing bid price for the 30 days
prior to closing the second advance and 25% above such average, respectively.
S. Steven Carl, chairman and chief executive officer of H.E.R.C.: ``This financing will allow us to
pursue our business with the U.S. Navy that was announced last week. It also allows additional
support of our municipal cleaning business. Along with internal generated cash, we are pleased to
have additional capital to grow towards profitability.''
H.E.R.C. Products Incorporated develops, manufactures, and markets products that eliminate and
control scaling and tuberculation on surfaces that come into contact with water, and develops,
manufactures and markets biorational (natural) pest management and plant growth products for the
agricultural and horticultural markets through its three operating divisions: H.E.R.C. Consumer
Products Incorporated, CCT Corp. (both wholly owned subsidiaries), and the Industrial Products
Group.
This press release contains forward looking information. Readers are cautioned not place undue
reliance on any such forward-looking statements, each of which speaks only as of the date made.
Such statements are subject to certain risks and uncertainties which are disclosed in the company's
SEC reports, including Form 10-KSB for the year ended Dec. 31, 1996 and the Form 10-QSB for
the quarter ended June 30, 1997. |
