Network Event Theater to Redeem Publicly Traded Warrants On January 28, 1999
Network Event Theater to Redeem Publicly Traded Warrants On January 28,
1999
NEW YORK (Dec. 28) BUSINESS WIRE -Dec. 28, 1998--
- Redemption Would Add $13 Million of Cash to Balance Sheet -
Network Event Theater Inc. (NASDAQ: NETS and NETSW) today announced
that it has called for redemption on January 28, 1999, all of its
publicly traded warrants at a price of $0.10 per warrant. Warrant
holders have until the close of business on that date to exercise their
warrants. There are currently approximately 2.6 million warrants
outstanding which were issued at the time of NETS Initial Public
Offering in April 1996. The warrants permit the holder to purchase one
share of NETS common stock for $5.00 and would have expired in April
2001. However, the warrants are subject to redemption by NETS at $0.10
per warrant (their original sale price) if the price of NETS common
stock exceeds $7.50 per share over a 20 consecutive trading day period.
That period ended at the close of trading on Wednesday, December 23,
1998.
Harlan Peltz, NETS' CEO said: "Our Board of Directors believe that
calling our warrants is in the best interest of NETS. The redemption
will bring approximately $13.0 million of cash into NETS, which will
strengthen our balance sheet, allow us to pay down some of our
long-term debt, and permit us to consider future acquisitions. In
addition, the 2.6 million of additional NETS common shares this will
introduce into the market will enhance liquidity for prospective
institutional investors who desire an expanded float. Currently, 80% of
NETS outstanding shares are owned by institutional funds, such as those
managed by Warburg Pincus, John Hancock, as well as the large
stockholding of private investors such as George Lindemann and myself
whose investment preceded the initial public offering."
Bruce L. Resnik, NETS' CFO stated: "The proceeds from this redemption
will add approximately $1.00 per share of book value. These extra funds
will permit the company to cut its long-term debt if it is attractive
to do so and provide the necessary liquidity for the company to
continue to invest in its expanding properties."
Individual investors who do not wish to have their warrants redeemed
may exercise their warrants by instructing their broker to do so or by
surrendering their warrant certificates prior to the close of business
on January 28, 1999, at the offices of the warrant agent, American
Stock Transfer & Trust Company, 40 Wall Street, 46th Floor, New York,
NY 10005, with the exercise form on the reverse side of the warrant
certificate completed and executed as indicated, accompanied by full
payment of the exercise price by certified check or bank draft payable
to Network Event Theater, Inc. About NETS:
NETS is the nation's leading college campus media and marketing
company. NETS is currently comprised of wholly-owned subsidiaries
including American Passage(R), which among other things is the leading
college newspaper advertising placement service, with a reach of more
than 2,000 colleges and universities, and a leader in commercial
postering on college campuses utilizing a national network of more than
300 representatives; Beyond the Wall(R) the largest four-color college
publication reaching 600 campuses through a 4 million circulation;
Campus Voice(R), a giant editorial wallboard network of 3,400 boards on
over 400 campuses with more than 100 million monthly passers-by; and
HotStamp(TM), the largest national free postcard advertising brand that
distributes 6 million postcards through almost 2,000 locations each
month. About CommonPlaces:
CommonPlaces LLC, which is 50% owned by NETS, seeks to become the most
trafficked and profitable Internet destination for college students.
Ben Bassi and Bill Townsend, part of the founding management team at
Lycos (NASDAQ: LCOS), the World's fourth largest Internet company, will
serve as CEO and Vice President Of Sales and Marketing, respectively.
Sean Gaddis, who formerly served as Director of Marketing for Creative
Computers (NASDAQ: MALL) and most recently as Group Product Manager for
Website Marketing at Netscape (NASDAQ: NSCP) overseeing Netcenter, will
serve as Vice President of Products and Services. Mark Palmer, who
served as the Director of the Technical Architecture and Management
organization and a principal consultant at Object Design, Inc. (NASDAQ:
ODIS), joins as the company's Chief Technical Officer. And Greg
Nichols, who most recently served as the Engineering Group Manager and
head of management configuration systems at Bay Networks (NYSE: NT),
becomes the Director of Engineering.
Except for the historical information herein, the matters discussed in
this news release are forward looking statements that involve risks and
uncertainties, including the timely development and acceptance of new
products, the impact of competitive products and pricing, and other
risks detailed from time to time in the company's SEC reports,
including the annual report on Form 10-KSB for the fiscal year ended
June 30, 1998 and its most recent quarterly report filed on Form 10Q
for the fiscal first quarter ended September 30, 1998.
-0- flb/ny*
CONTACT: Network Event Theater Inc.
Bruce Resnik, CFO
212/622-7300
KEYWORD: NEW YORK
INDUSTRY KEYWORD: INTERACTIVE/MULTIMEDIA/INTERNET
COMPUTERS/ELECTRONICS COMED Today's News On The Net - Business Wire's
full file on the Internet
|
