GMGC more financing. Still can't figure out why I never shorted them last year.
biz.yahoo.com
Wednesday March 31, 5:16 pm Eastern Time
Company Press Release
General Magic Secures Additional Financing
Company Obtains $20 Million to Further Voice-Enabled Services
SUNNYVALE, Calif.--(BUSINESS WIRE)--March 31, 1999--General Magic, Inc.
(Nasdaq:GMGC - news) today announced that it has obtained $20 million from the sale of 2,000 shares of Series D 5%
Convertible Preferred Stock to a group of private investors.
The Company anticipates using the funds to commercialize additional voice-enabled services, and to expand its network
operations center to accommodate up to 500,000 active users by the end of 1999.
''This cash infusion furthers our ability to grow our business of providing voice-enabled services for telecommunications carriers
and Internet companies,'' commented Steve Markman, General Magic's chairman, chief executive officer and president. ''The
added financing will help us build the market for voice-enabled services, which analysts predict will reach $2 billion to $3 billion
by 2001 in the U.S.''
Terms of the stock include a forward-looking conversion ratio, based on the price of General Magic's common stock at 30,
60, or 90 days from the date of issuance, at General Magic's option. The initial conversion price of the Series D Preferred
Stock will be calculated at a premium to the then current market price of General Magic common stock. The conversion price
is subject to further adjustment based on future market prices of General Magic common stock.
James McCormick, chief operating officer, noted, ''The forward-looking initial pricing mechanism allows us and our common
stockholders the benefit of a potential increase in the price of our common stock. This transaction also gives us added flexibility
to operate in the coming months, and we believe it will be sufficient to fund our efforts through the second half of 1999.'' The
Series D Preferred Stock is eligible for conversion once the initial conversion price is set (in 30, 60 or 90 days), and matures in
three years.
The financing transaction also included the sale of 150,000 three-year warrants to purchase additional shares of common stock
at a price of $5.078.
About General Magic
General Magic offers integrated voice-enabled services that make communication and access to information easy and
convenient for people, no matter where they are. The company's development efforts are founded on its patented agent
technology and innovative voice user interface to provide simple, yet effective ways for people to keep in touch with the
information they need to be successful. For more information on General Magic, visit the company's Web site at
generalmagic.com.
General Magic notes that this press release contains forward-looking statements. These statements are subject to risks and
uncertainties that may cause actual results to vary materially. These risks and uncertainties include, but are not limited to, the
challenges inherent in the development and delivery of complex technologies; the uncertainty that the company's Portico service
will attract significant users or generate significant revenues, if any; the uncertainty that the company will be able to establish
arrangements to provide voice-enabled services through major Internet companies, telecommunications carriers or other
partners, or that these arrangements will generate significant revenues, if any; the risk that the company will not complete the
expansion of its network operations center on a timely basis; the company's need to raise additional capital to execute its
business plan; the company's ability to respond to competitive developments; and the company's reliance on attracting, retaining
and motivating key technical, marketing and management personnel. These and other risk factors are detailed in General
Magic's 1998 Form 10-K filed with the Securities and Exchange Commission.
Note to Editors: General Magic, Portico and magicTalk are trademarks of General Magic, Inc. and may be registered in certain
jurisdictions.
Contact:
General Magic, Inc.
Wendy Carhart, 408/774-4400
wendy_carhart@generalmagic.com
or
Financial Relations Board
Anne-Marie Stapelman, 415/986-1591
ams@sf.frbd.com
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