ALERT ON XYBRW. . . . .Warrants expire on Monday.
News July 16, 10:28 Eastern Time
XYBERNAUT DOES NOT INTEND TO ALTER TERMS OF ITS WARRANTS WARRANTS TO EXPIRE ON JULY 19, 1999; ELIMINATION OF 26% POTENTIAL DILUTION AND LACK of Effective "Call Provision" Cited As Key To Decision
FAIRFAX, Va., Jul 16, 1999 /PRNewswire via COMTEX/ -- Xybernaut Corporation (Nasdaq: XYBR), the
leader in wearable computing, today announced that it does not intend to alter the terms of its
outstanding publicly-traded warrants (Nasdaq: XYBRW), which expire on their own terms on Monday,
July 19, 1999. The stated expiration date of the warrants is July 17, 1999, which is a Saturday, so the effective expiration date will be the close of business on Monday, July 19, 1999.
Edward G. Newman, President of Xybernaut stated, "After much consideration and debate, at this time,
we feel that our stockholders are best served by letting the warrants expire on the date that has been
disclosed in almost every filing we have made with the SEC since July 1996. Effectively lacking a
realistic "call provision," the current warrants could not be considered a reliable source of capital for the company, and the elimination of market overhang would seem to be most beneficial to our
shareholders. We look forward to our stockholders benefiting from this decision."
John F. Moynahan, Senior Vice President and Chief Financial Officer, added that, "Allowing the
warrants to expire eliminates 5.8 million shares, or 26%, of potential dilution for our common
stockholders and the related market overhang that has complicated the outlook for our stock since the IPO in July, 1996. We feel that the warrants have provided resistance in the past to the stock moving
above the strike price of the warrants. Allowing the warrants to expire will enable the market to move freely without the inherent structural resistance they have represented. In addition to eliminating a vehicle commonly utilized by day traders and professional short sellers, the expiration of the warrants will provide us with more control over the timing and amount of any future funding for the Company. It is our belief that our long term shareholders will understand the benefit they derive from this decision."
About Xybernaut Corporation: Xybernaut Corporation is the leader in providing hardware, software and service solutions to the wearable computing industry. The Company's patented wearable computer
allows users hands-free access to information in the computer's internal storage, in local area networks
and on the Internet onan as-needed, where-needed basis. Xybernaut's software is designed to provide users with the right information needed for the task at hand using consistent navigation techniques and screen presentations. Xybernaut's current customers include leading Fortune 500 companies and government organizations for many mobile knowledge delivery system applications, including installation, maintenance and repair, diagnosis, inspection, inventory control, manufacturing and data collection. Key industries include manufacturing, distribution, transportation, government, and
insurance. Headquartered in Fairfax, Virginia, Xybernaut has offices and subsidiaries in Europe
(Germany) and Asia (Japan).
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "expect," or "intends," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, the availability of components and production of the Mobile Assistant, general acceptance of the Company's products and technologies, competitive factors, the ability to successfully complete additional financings and other risks described in the Company's SEC reports and filings.
Visit Xybernaut's Web Site at xybernaut.com
SOURCE Xybernaut Corporation
(C) 1999 PR Newswire. All rights reserved.
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CONTACT: Agency contact: Karen Thomas of Thomas Public Relations,
516-549-7575, kthomas@thomas-pr.com; Company Contact:
Robin Bono, Director of
Corp. Communications of Xybernaut Corporation,
703-631-6925,
rbono@xybernaut.com; or Investor Contact: Ron Stabiner |
