ADDITIONAL INFO ON SOME OF STOCK TO HIT MARKET
*********
Effective as of January 28, 1999, pursuant to the terms of a Securities Purchase Agreement the Company agreed to sell to Capital Ventures International in a private placement its 8% Convertible Term Debentures in the aggregate principal amount of $6,000,000, issuable in two tranches ($3,500,000 on January 28, 1999 and the remaining $2,500,000 upon satisfaction of certain closing conditions) (the "Convertible Debentures") and Stock Purchase Warrants (the
"CVI Warrants") to purchase an aggregate of up to 693,642 shares of the Company's common stock, issuable in two tranches (404,625 on January 28, 1999 and the remaining 289,017 upon the satisfaction of certain closing conditions).
The term of the Convertible Debentures is four years and, until July 28, 1999, they are convertible into common stock at a conversion price of $5.27 per share. After July 28, 1999 (or earlier, in certain instances) the Convertible Debentures are convertible into common stock at a variable rate, but no event less than $2.49 per share. The 8% yield is payable in shares of common stock. Accordingly, the maximum number of shares of common stock that could be acquired through the conversion of the Convertible Debentures is 3,180,723 shares, assuming the Company satisfies the conditions to the investor's purchase of the $2,500,000 Convertible Debenture pursuant to the second tranche. The exercise price of the CVI Warrants is $5.27 per share, subject to adjustment in certain events. The term of the CVI Warrants is five years and they contain antidilution and net exercise provisions.
*****************
|
