InnovaCom Receives Funding to Move Forward
PR Newswire - July 10, 1998 19:01
Company dramatically reduces operating costs
SANTA CLARA, Calif., July 10 /PRNewswire/ -- InnovaCom, Inc., (OTC Bulletin Board: MPEG), a development stage technology company whose principal product focus is video compression technology and its related systems, announced today that it has received $2 million dollars in proceeds from a convertible debenture, to be used as working capital.
An existing institutional investor has provided the $2,000,000. The financing package will be due on June 29, 2003, with an annual interest rate of 7% per annum, payable quarterly in arrears. Under the terms of the agreement, warrants totaling 700,000 shares can also be exercised.
In addition to the new funding, InnovaCom also announced that it has dramatically reduced its monthly operating costs by more than one-half. Board Chairman Mark Koz remarked, " Frank Alioto and his turnaround team have taken very quick and decisive steps to impose strict financial controls and processes at InnovaCom. All personnel and financial resources are squarely aimed at bringing our products to market as quickly and as efficiently as possible."
InnovaCom, Inc., is located at 3400 Garrett Drive, Santa Clara, Calif. 95054. For more information, please call us at: (Ph) 408-727-2447; (Fx) 408-727-6625 or visit our website at: innovacom-mpeg2.com. For Investor Relations, please call: (ph) 888-464-6734.
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