Good News
Company Press Release
Tricord Systems Inc. Completes $3 Million Private Placement Led by Rod Canion
Management Team is Strengthened
PLYMOUTH, Minn.--(BUSINESS WIRE)--Dec. 7, 1998--Tricord Systems Inc. (NASDAQ: TRCD - news) today announced that it has entered into a definitive agreement for a $3 million private placement. Under the terms of the definitive agreement, the company will issue 3 million shares of restricted common stock ($0.01 par value) at $1 per share. The investors will also receive one warrant for each share of stock with an exercise price of $3.50 per share, expiring in five years. Rod Canion, a founder and former CEO of Compaq Computer Corporation (NYSE: CPQ - news) was the lead investor. The round will close and be funded by December 18, 1998. In addition, several computer industry business and marketing veterans have assumed key management positions, augmenting Tricord's innovative development and engineering capabilities.
''With a new infusion of capital and a world-class management team, we are now able to accelerate our efforts to deliver the technologies that will ease customers' network storage headaches,'' said Tricord chairman and CEO John Mitcham. ''With the explosive growth of the Internet and multimedia applications, the demand has never been greater for simple and effective management of storage. Our Tricord Storage Management Software technology is poised to deliver on the promise of a single storage pool as a shared network resource. This will make expandable and easy-to-manage storage a reality.''
Tricord's technology is appropriate for the broad network storage marketplaces, including host-based storage, network attached storage (NAS) and storage area networks (SAN).
Management Team
Concurrent with the investment of new capital, key management roles at Tricord are being filled: J. David Cabello, former senior vice president and general counsel of Compaq, becomes vice president and general counsel at Tricord; Kathleen H. Clark, former marketing executive at Compaq, becomes vice president of marketing at Tricord; Lewis Schrock, former marketing executive at Compaq, becomes director of product marketing at Tricord.
''Tricord now has a marketing team capable of hitting the ground running,'' said Clark. ''Our first priority is to better understand the customers and develop a comprehensive marketing plan to address their needs.''
Investment
In addition to Canion, investors include: Tim Harris, former Compaq vice president, as well as three members of the new management team, David Cabello, Kathleen Clark and Lewis Schrock.
''I am very impressed with Tricord's technology and management team,'' said Canion. ''With David, Kathleen and Lewis joining the team I believe that Tricord is positioned to take advantage of the rapidly growing market for network storage.''
Canion has agreed to be available to advise the management team on strategy and product direction.
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