I'm not sure of the implications this move will have on the company, but it seems as if things are moving in the right direction if they are looking to raise working capital. They also seem bullish on their stock price rising to at least $7.50 in the future. Any comments or info anyone?
Eric,
Unfounded hype is not the kind of support this stock needs. It's fundamentals are solid, lets stick to the facts. Ciao.
#brent
HAUPPAUGE, N.Y., Dec. 9 /PRNewswire/ -- Cyber Digital Inc (New Jersey) announced today that it is in
the process of negotiating a private placement of preferred stock to an institutional investor. If
consummated, the placement would consist of 2,000 shares of Series B-1 preferred stock at $1,000 per share,
with options to purchase 3,000 shares of series B-2 convertible preferred stock at $1,000 per share for a
limited time after the closing. The Company expects the Series B-1 preferred stock placement to close by the
end of 1996.
Both Series B-1 and B-2 preferred stock would not be convertible until one year from the closing date. The
conversion price for Series B-1 preferred stock would be the lesser of either 85% of the average closing price
during five trading days preceding the conversion date or $7.50 per share. The conversion price of series B-2
preferred will be the greater of either 85% of the average closing price during five trading days preceding the
initial closing or $7.50 per share.
If the private placement is consummated and the options are exercised, the net proceeds to the Company
would be approximately $5 million, which would be used primarily to fund the Company's working capital
requirements, expansion of sales and marketing activities and continued research and development of
wireless switching systems. There can be no assurance, however, that the private placement will be
consummated or that the options will be exercised on the terms set forth above.
Cyber Digital, Inc., designs, manufactures, markets and services advanced voice and data communications
based on its proprietary distributed digital switching technology. SOURCE Cyber Digital, Inc. |
