VCSY - VERTICAL COMPUTER SYSTEMS RECEIVES $2,500,000 TO $10,000,000 MINIMUM-MAXIMUM
FUNDING COMMITMENT FROM AVENEL FINANCIAL GROUP
LOS ANGELES, Feb 11, 2000 /PRNewswire via COMTEX/ -- Vertical Computer
Systems, Inc. (OTC Bulletin Board: VCSY) announced today that it has
received a commitment letter from Charlotte, North Carolina-based
Avenel Financial Group (Avenel) to provide them with a $2,500,000 to
$10,000,000 equity funding through the sale of its Series "A" Preferred
Stock. According to the terms of the commitment letter, the Company
will make available 50,000 shares of its Series "A" Preferred Stock at
a price of $200 per share with each preferred share convertible into 25
shares of the Company's restricted common stock. In addition, for every
$10 invested into the Company by Avenel, Avenel will receive a stock
purchase warrant to purchase one share of VCSY common stock at a price
of $20 per share. According to the commitment letter, Avenel has agreed
that the preferred shares will not have any registration rights and
that they may not be converted into common stock until the expiration
of one year.
Richard Wade, president, stated, "We are delighted to have the Avenel
Financial Group as an investment partner in our dynamic Internet
venture. Their commitment to invest between $2,500,000 to $10,000,000
in our Company as a purchase of restricted securities demonstrates to
us that they intend to not only be a long term player in Vertical, but
have endorsed our corporate vision in making Vertical a world wide
internet company."
About Avenel Financial Group Avenel Financial Group is a private
venture capital group whose recent investments include Summus, the
majority owner of the publicly held High Speed Net Solutions, Inc. and
Zebramart.com, Inc. (OTC Bulletin Board: ZMRT),
(http://www.zebramart.com), an internet premier luxury club.
About Vertical Computer Systems Vertical Computer Systems, Inc. is a
multi-lingual portal provider, and e-commerce solutions company, based
in the United States. The Company provides a full range of Internet
services that include building e-commerce solutions nationally and
internationally, distributing content via its multi- lingual portal
network (http://www.TheChinaBridge.com); and Internet services
(http://www.thepostmaster.net). Through its majority-owned subsidiary,
Externet World, Inc., the Company provides online shopping services
(http://www.ShoppingInternet.com) and proprietary online gaming
software (http://www.ccpsoftware.com). Vertical Computer Systems is
committed to building e-commerce communities on the Internet in the
Americas, Europe, Asia and Pacific Rim.
Forward-looking statements in this release are made pursuant to the
Safe Harbor provision of the Private Securities Litigation Act of 1995.
These forward-looking statements are subject to certain risks and
uncertainties and actual results could differ from those discussed.
This material is information only, and is not an offer or solicitation.
SOURCE Vertical Computer Systems, Inc.
(C) 2000 PR Newswire. All rights reserved.
prnewswire.com
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CONTACT: broker, The Hawke Group, Inc., 954-564-7114, or fax,
954-564-9848, or website, www.hawkegroup.com; or investors,
Mandel Consulting,
Inc., 954-973-3493, or fax, 954-773-3558, both for Vertical
Computer Systems,
Inc.
WEB PAGE: ccpsoftware.com
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