The 9-10 percent doesn't reflect actual ownership. That's just the vagaries of the market. I expect that when DRIV takes off, the market will give TSQD credit for more than the 16% it currently owns, as it will be a warrant situation, giving people the chance to get in on DRIV's lofty prices. Think TSQD's going to want to sell its shares when they're worth $240 million? Heck, they're worth $110-120 million right now. Think the share price reflects all that cash? Not yet. But I believe it will!
MINNEAPOLIS, Dec. 17 /PRNewswire/ -- Tech Squared Inc. (OTC Bulletin Board: TSQD) today
announced it has realized proceeds of $4,430,000 from its participation in the recent secondary offering
of Digital River, Inc. (Nasdaq: ) common stock.
The offering included 1,750,000 newly issued shares of stock offered by Digital River, Inc., and
1,250,000 shares offered by selling shareholders, including 200,000 sold by Tech Squared. Digital River
announced pricing of the offering on Dec. 10 at $23.50 per share. The offering closed on Dec. 15.
The 200,000 shares sold by Tech Squared were issued pursuant to an option held by Tech Squared to
acquire 3,200,000 shares of Digital River, a leading provider of electronic outsourcing solutions to
software publishers and online retailer clients. Tech Squared continues to hold an option on the
remaining 3,000,000 shares, exercisable in whole or in part through Dec. 31, 2000, for a total exercise
price of 93 cents.
The offering reduced Tech Squared's beneficial ownership in Digital River from approximately
19.1 percent to approximately 16 percent. Tech Squared is accounting for its investment in Digital
River as available-for-sale securities. Tech Squared is currently studying alternative uses of the proceeds
from such sale.
Tech Squared said a portion of its gain will be offset by net operating losses and loss carry-forwards.
Tech Squared, based in Minneapolis, is a national marketer and distributor of mid- to high-end
microcomputer hardware, software and peripherals primarily to businesses in the desktop publishing,
graphic arts and pre-press industries, as well as an emerging customer base of Internet and intranet site
developers.
Except for historical financial information, the information contained in this release is forward-looking and
subject to certain risks as described in the company's filings with the Securities and Exchange
Commission, including the company's annual report on Form 10-K for the year ended Dec. 31, 1997.
Actual results may differ significantly based on such risks.
For more information, contact Tom Langenfeld of Swenson NHB Investor Relations, Minneapolis,
612-371-0000, for Tech Squared or Jeffrey F. Martin of Tech Squared Inc., 612-832-5622.
SOURCE Tech-Squared, Inc.
|
