CSNTE floorless convertible -- company is developing a color fax system, losing money, went public in May, dumped its CEO in December, finances in turmoil, now selling at less than 1/3 of its high for the year, barely shortable at 5 1/4 yesterday,
Haven't read the SEC reports yet. Company's web site is:
compressent.com
Here's the release on the floorless:
Compressent Closes Definitive Agreement on Equity Financing
SAN JOSE, Calif., Feb. 4 /PRNewswire/ -- Compressent Corporation ("the company") (Nasdaq: CSNTE), today announced a definitive agreement to sell to Call Now, Inc. (BB: CN0W) 56,000 convertible preferred shares at $62.50 per share and 500,000 warrants to purchase an additional 500,000 common shares at $6.25 per share in exchange for $3.5 million. The convertible preferred stock is convertible to common stock at a conversion rate of $6.25 per share. In March 1999, the conversion rate becomes the lower of $6.25 per share or market price.
Simultaneously, the company entered into a separate agreement to establish a line of credit of up to $10.0 million. The company may, at its sole discretion, request loans through July 1998.
"This equity financing and line of credit is a key to enable Compressent to focus on key sales initiatives, related core product and technology development, and potential acquisitions of complementary technologies," said Won-Gil Choe, Compressent's President and CEO.
Compressent develops, licenses and markets color facsimile and communication software products based on compression technologies. The company offers a range of products for business and personal use in the home, small office and OEM markets. Compressent was founded in 1994 and is headquartered in San Jose, California. Information about the company and its products can be found at www.compressent.com.
This press release contains "forward-looking statements" within the meaning of the Securities Act and the Securities Exchange Act. Such forward looking statements are subject to risks and uncertainties, including the risks associated with the equity investment or events that could delay or interfere with the company's ability to make draws against the line of credit.
SOURCE Compressent Corporation
CO: Compressent Corporation
ST: California
IN: CPR
SU: FNC
02/04/98 05:31 EST prnewswire.com |
