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Microcap & Penny Stocks : NVEI (Was NVXE) - New Visual Entertainment Inc. -- Ignore unavailable to you. Want to Upgrade?

To: StockDung who wrote (1905)	9/28/2000 11:49:51 AM
From: ThirdEye	Read Replies (1) \| Respond to of 2211

Yup! This looks pretty suspect. Funding by that "offshore" entity noted in the Bloomberg hit...er....research piece. This is alot of cookies to sell nothing, huh? What must LBCG be thinking? New Visual Entertainment, Inc. Receives Financing Commitment For Up To $23 Million From Lilly Beter Capital Group, Ltd.Funding To Accelerate Development and Commercialization Of Company's New "Last Mile" Technology SAN DIEGO, Sep 26, 2000 (BUSINESS WIRE) -- New Visual Entertainment, Inc. (OTCBB: NVEI), a pioneer in the development of proprietary transmission technology focused on delivering the ultimate "last mile" solution, announced today that it has received a financing commitment from Lilly Beter Capital Group, Ltd. (LBCG) that could result in up to $23 million in equity financing for the Company. The terms and conditions of the straight equity private placement provide for LBCG to purchase $5 million of the Company's common stock in several tranches at a purchase price equal to 87% of the average market price of the common stock over the five days preceding the closing of each tranche. In addition, LBCG will receive a warrant giving it the right to purchase up to an additional 3 million shares of the Company's common stock at an exercise price of $6.00 per share. If the warrant were fully exercised, the Company would receive $18 million in additional financing. Proceeds from the funding will be used to accelerate development and commercialization of the Company's proprietary transmission technology, currently scheduled for third party evaluation in October. The closing of the transaction is expected to occur in October and is subject to mutually acceptable documentation and approval of each company's board of directors. In other news, New Visual reported that it has formally terminated its previously announced merger agreement with privately-held Intelecon Services, Inc., a Dallas-based provider of business communications technology and value-added services, in order to focus its resources on commercialization of its "last mile" technology. Ray Willenberg, Jr., Chief Executive Officer of New Visual, stated, "This straight equity funding from Lily Beter represents a tremendous vote of confidence in our development activities, which are beginning to gain considerable momentum. The recent discovery of new innovations, which our engineers believe could greatly enhance the marketability of our technology, could create additional significant opportunities for the Company upon its commercialization. We look forward to sharing details regarding these development efforts and the results of the third party evaluation in the very near future. With respect to our decision to terminate the merger with Intelecon, management determined that we must remain singularly focused on our development efforts. Any dilution of this focus is simply not prudent, nor is it in the best interests of our valued shareholders. Nonetheless, we wish nothing but continued success to Intelecon." Rick Kosloske, President of Lilly Beter Capital Group, Ltd., added, "Lilly Beter Capital Group typically provides debt financing on hard assets. Because of the Company's transmission technology and our confidence in New Visual's CEO, Ray Willenberg, and the team he has assembled, we are pleased to be making this equity investment. We are committed to the continued development of the Company's `last mile' technology." About New Visual Entertainment, Inc. New Visual is pioneering the development of a proprietary broadband transmission technology with the mission to utilize existing copper telecommunications infrastructure to deliver high data content to the home or office at VDSL (52Mbps) data transfer rates. Through its New Wheel Technology, Inc. subsidiary, New Visual is developing this technology, which would allow the bundling of voice, video and data over existing copper telephone wires, eliminating the need for fiber optic cable to the home or office. Its initial development efforts are focusing on "Very High rate Digital Subscriber Line" (VDSL), and have demonstrated results exceeding industry standards. New Visual's common stock is traded on the Over-The-Counter Bulletin Board under the symbol NVEI. With the exception of historical information contained in this release, this release includes forward-looking statements made under the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, including but not limited to the following: product development difficulties; market demand and acceptance of products; the impact of changing economic conditions; business conditions in the internet, computer, and 3D film and video industries; reliance on third parties including potential suppliers, licensors and licensees; the impact of competitors and their products; risks concerning future technology; and other factors detailed in this release and in the Company's Securities and Exchange Commission filings. CONTACT: Continental Capital & Equity Corporation, Longwood, Fla. Dodi B. Handy, 407/682-2001