The Guessing Is Over:
VITECH AMERICA ANNOUNCES $38.5 MILLION OF PRIVATE
PLACEMENTS
MIAMI--(BUSINESS WIRE)--Oct. 15, 1997--Vitech America, Inc. (NASDAQ:VTCH), a US-based, manufacturer and
distributor of computers, servers and networking equipment in Brazil, today announced that it completed $38.5 million of
private placement financings by groups of institutional and individual investors on October 10, 1997.
The funds raised will allow Vitech to retire $10 million of a debt, bearing a rate of 20%, to Georges St. Laurent, Jr., and $12
million in short-term debt from Brazilian banks, bearing interest rates from 18% to 26%. Five million dollars of the proceeds
will be used to complete the cash portion of the acquisition of Microtec Sistemas Ind. e Com. S.A. The remainder,
approximately $11 million, will be used for expansion of inventory, manufacturing capacity and acquisitions. The placements
consist of convertible debt with a 10% coupon and is convertible at $16.50 per share. The thirty-day trailing average price per
share, prior to the closing was $15.87.
''We are extremely pleased with this transaction and the new institutional investors who chose to participate. Access to
lower-priced capital provides Vitech additional leverage and flexibility to continue to grow our business,'' explained William C.
St. Laurent president and Chief Operating Officer of Vitech.
In July, Vitech acquired Microtec Sistemas Ind. e Com. S.A., a Sao Paulo-based PC manufacturer and distributor which has
a strong reputation and user base in the corporate and government sectors. The combined company is the fourth largest player
in the fast growing Brazilian PC market.
Vitech America, Inc. assembles and offers its own brand name personal computers, business systems integration and network
equipment, servers and related products in Brazil under the names: Vitech Vision(TM), EasyNet(TM), and MultiShow(TM).
Microtec produces personal computers under the names Mythus,(TM) Quest(TM) and Vesper(TM). The combined company
utilizes the direct-to-end-users selling model to grow its marketshare in all sectors of the Brazilian marketplace.
Except for the historical information herein, the matters discussed in this press release include forward-looking statements that
may involve a number of risks and uncertainties. Future results may vary significantly based on a number of factors, including,
but not limited to, risks in market acceptance of new products and continuing product demand, the impact of competitive
products and pricing, changing economic conditions, both here and in Brazil and other risk factors detailed in the Company's
most recent annual report and other filings with the Securities and Exchange Commission.
Contact:
Edward Kelly, Vitech America, Inc.
(305) 477-1161 x7726, edkellymia@vitech.net
or
Sylvia Dresner, VMW, Inc.
(212) 605-3140, VMWeiner@aol.com |
