Tuesday October 13, 4:18 pm Eastern Time
Company Press Release
Arete Industries Inc. Receives Funding Commitments
and Signs An Agreement to Convert Its Preferred
Stock to Common
BOULDER, Colo.--(BUSINESS WIRE)--Oct. 13, 1998--Arete Industries, Inc. (OTC:AREE - news) announced today that
the Company received tentative funding commitments totaling $600,000 and signed an agreement to convert its outstanding
Class B Preferred stock with a face value of $710,000 into shares of common stock.
The Company also announced that it had arranged a new $50,000 line of credit for its direct mail and commercial printing
operations in Council Bluffs, Iowa.
Thomas P. Raabe, the Company's CEO, stated that these actions are the first in a series of financings and operational changes
initiated at the September 1, 1998 shareholders meeting to recapitalize the Company and return the Company's direct mail and
commercial printing operations to profitability. He further stated that conversion of the Class B Preferred stock removes
potential impediments to future acquisitions and materially enhances the position of the common stockholders. ''Importantly,''
Mr. Raabe stated, ''conversion of the Preferred at a favorable price of $0.025 per share was linked to an infusion of $100,000
in new equity over the next several weeks.'' ''These funds will be sufficient to revitalize existing operations and enable the
Company to initiate the growth stage of its plan.''
The Company's new board of directors has authorized management to immediately commence a further private offering of up to
$500,000 in common stock or convertible debt to fund the growth phase of the plan. The goal, he stated, is to raise just enough
capital to finance each incremental phase of the plan at the highest price per share possible, and on a just in time basis, in order
to minimize dilution to current stockholders.
Please note a name and symbol change effective October 1, 1998, to Arete Industries, Inc. (OTC:AREE - news) formerly
Travis Industries, Inc. (formerly OTC:TVSI) |
