ConSyGen Accepts $5.1 Million Subscription: Will File For Nasdaq
Listing
Monday September 29 9:41 AM EDT
Company Press Release
PHOENIX--(BUSINESS WIRE)--Sept. 29, 1997--ConSyGen, Inc. (OTCBB:CSGI) announced today that it has accepted a common stock subscription for which it will receive approximately $5.1 million in net proceeds. ConSyGen expects to receive the proceeds of this subscription on or about Oct. 1, 1997. Ron Bishop, President and CEO stated that ConSyGen will immediately file for inclusion on the Nasdaq Stock Market's SmallCap market upon receipt of the funds.
ConSyGen intends to use the net proceeds for working capital and general corporate purposes, including sales and marketing.
The subscription is for 900,000 shares of common stock at a price of $5.8625 per share and is from a pension fund of a large German company whose identity was not disclosed. The shares were sold in a private placement exempt from registration under the Securities Act of 1933, as amended, pursuant to Regulation D promulgated thereunder. Consequently, the shares may not be sold except pursuant to a Securities Act registration statement or an exemption from registration. The company has agreed to file a Securities Act registration statement, within 45 days of closing, which registers the shares for resale by the investor.
Ron Bishop continued: ``ConSyGen has always believed that it has one of the best year 2000 toolsets in the industry but has not had sufficient funds to aggressively market its capability. Once we receive the proceeds from this subscription, we will have sufficient funds to build the sales and marketing infrastructure necessary to make the world aware of the tremendous speed accuracy and competitive price with which our fully automated year 2000 toolset can make code compliant for the year 2000 and beyond.
Since we announced our marketing campaign last month, we are receiving more inquiries than ever before.``
ConSyGen, Inc. is a Phoenix-based software company that provides conversion/correction services with its proprietary technologies. The company's ConSyGen 2000 software is a fully-automated toolset that automatically corrects dates in both source code and data to be compliant for the Year 2000 and beyond. The company's ConSyGen Conversion toolset automatically converts software to run on a different hardware platform. For example, software running on older BULL, IBM, Unisys, etc., mainframes can automatically be converted to run on new open or client-server platforms (often called downsizing).
Risk Warning: the information contained in this press release contains forward-looking statements concerning the company's financial performance and business operations. The company wishes to caution readers of this information that actual results may differ materially from those projected in any forward-looking statements. Factors which might cause actual results to differ materially from those projected in the forward-looking statements contained herein include the following: the company's inability to fund its business either through continuing operations or obtaining additional financing; failure of the company's ConSyGen 2000 or ConSyGen Conversion toolsets to enable the company to convert software programs successfully so that they are Year 2000 compliant and migrated to a functionally-equivalent operation; setbacks in developing the ConSyGen 2000 or ConSyGen Conversion toolsets or the company's other software products; market acceptance of the company's products; competitive factors; technical obsolescence of the company's products; and the ability of the company
to protect its proprietary information.
Contact:
ConSyGen, Phoenix
Ron Bishop, 602/496-4545
or
Martin E. Janis & Company, Inc.
Elliott Jacobson, 312/943-1100 |
