Constellation 3D Responds to Dow Jones Newswire Story
NEW YORK--(BUSINESS WIRE)--July 13, 2001--Constellation 3D, Inc.
("C3D") (Nasdaq/NMS: CDDD), developer of Fluorescent Multilayer Discs (FMD) and Cards (FMC), today responded to July 12, 2001 comments by Kathy Chu of Dow Jones Newswires.
In the article, Ms. Chu stated that, "Constellation 3D Inc. (CDDD) dropped for a second straight day Thursday after the company changed the terms of a secondary offering, allowing a group of selling shareholders to immediately exercise 228,585 one-year warrant shares." Information concerning these 228,585 warrants was first released in an SEC 8-K filing one month ago, on June 11, 2001. Additionally, none of the shares underlying the warrants have yet been issued, nor is an S-3 Registration allowing the sale of the underlying shares yet effective.
As previously reported in the June 11, 2001 filing, the warrants under discussion were originally created when the Company granted an investor group the rights to 750,457 one-year optional units (with additional adjustment provisions), as part of a financing deal entered into in August and September of 2000. The June, 2001 8-K filing stated that the additional adjustment provisions were cancelled, and the number of optional warrants issued in relation to the financing were reduced such that they are exercisable into a total of 228,585 Constellation 3D common shares. As a further provision of this settlement, these investors gave up all claims to additional equity warrants issuable pursuant to the adjustment provisions. As of April, 2001, the aggregate warrants that would have been issuable pursuant to the one year optional units would have been exercisable into 1.6 million shares at initial exercise prices averaging under $5.00, and had additional reset provisions that could have significantly lowered the exercise price over the next two years.
Ray Tellini, Vice-President Finance of Constellation 3D, stated, "The transactions reported in our June, 2001 8-K filing should prove to be beneficial to shareholders going forward. We significantly reduced the number of warrants outstanding and eliminated additional adjustment provisions in three separate instances and successfully settled two outstanding lawsuits. The Company has raised in excess of $35 million dollars to date in the research and development of Fluorescent Multilayer (FM) technology, and anticipates the execution of additional funding.
Mr. Tellini continued, "Additionally, the Company has previously demonstrated FM data storage media with 20 discrete layers of data, and has also demonstrated the reading, or playback, of digital movies and other data from several layers of an FM disc. C3D has been making great strides in the development of its technology and in discussions with potential licensing partners. To date, our technology represents the only economical approach for putting more than two layers of data onto removable data storage media.
Constellation 3D, Inc.
The Company is the worldwide leader in the development of high capacity Fluorescent Multilayer Disc and Card (FMD/C) technology. Constellation 3D holds or has made applications for over 120 worldwide patents in the field of optical data storage, and is supported by 65 scientists. Headquartered in New York City, the Company has additional offices and laboratories in Massachusetts, Israel and Russia. More information is available at www.c-3d.net.
Safe Harbor Statement
Statements contained in the news release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements as "The Company... anticipates the execution of additional funding" and "To date, our technology represents the only economical approach for putting more than two layers of data onto removable data storage media" are subject to risks and uncertainties including competition, ongoing discussions with product and equipment manufactures, and technological advances, and "Risk Factors" as stated in recent SEC filings, which may cause actual results to differ materially from expected results.
CONTACT:
Constellation 3D, Inc.
John Ellis, 781/933-9435
marketing@c-3d.net
or
Investor/ Broker Inquiries:
FOCUS Partners LLC
Bradley Meyer/Harvey Goralnick, 212/752 9445
investors@c-3d.net
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