Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: purecntry5 who wrote (902)	12/19/1998 1:29:00 AM
From: Rande Is	Respond to of 57584

StarBase Insiders Invest in Company at a Premium to Market Price Executive Management Team Extends their Personal Financial Commitment SANTA ANA, Calif., Dec. 18 /PRNewswire/ -- StarBase Corporation (Nasdaq: SBAS), a leading provider of advanced Internet and intranet-based technical collaboration and software configuration management tools, today announced a private placement of $70,000 by members of the executive team. The private placement consists of approximately 60,000 shares of restricted common stock priced at $1.18, per share, and about 12,000 two-year warrants with a strike price of $1.18. The purchase of this common stock represents about an eighty-percent premium to the current market price. William Stow, III, President and Chief Executive Officer, stated, "Executives of the company have been discouraged from the purchase or sale of securities in the company due to the dynamic nature of an emerging company and the high degree of inside information available to executives of the company. However, since the shares in the private placement are restricted for one year and the market price of the shares has been below the investment price for almost two months, the executives are now allowed to complete this investment. The executives agreed that the price of the common shares should be set at a considerable premium to the market as they believe, given the current market price, the stock is highly undervalued. Furthermore, even though the private placement is set at a price significantly above the market on a percentage basis, the price difference in real dollars is considered insignificant compared to what we believe to be the real value of the company over the next 24 months. The price appreciation that we believe the shares will experience during this period would provide a very healthy return on the executive's investment even at this premium to the current market price." The completion of the private placement becomes effective upon Board of Directors approval which is expected to occur in the first week of January. When used in the preceding discussion, the words "believes, expects, or intend to" and similar conditional expressions are intended to identify forward-looking statements. 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, (i) conditions in the general economy or the software industry, (ii) the timely development and market acceptance of products and technologies, (iii) competitive factors, (iv) demand for team productivity software products, (v) sell-through of products in the sales channel, (vi) and other risks described in StarBase Corporation's SEC reports and filings. About StarBase StarBase Corporation, with headquarters in Santa Ana, Calif., offers a complete family of advanced Internet and Intranet-based technical collaboration and software configuration management tools for improving team productivity, including Year 2000 and Enterprise Program Management Office applications. StarTeam has won several awards including InfoWorld's 1997 "Best of the Test Center," PCWeek's 1996 Analyst's Choice and PC Week's 1996 IT Excellence Award. Leading organizations such as Bank of America, Boeing, Dell Corporation, Intel Corporation, Sprint, and Xerox have chosen StarTeam to aid in their development projects. StarBase is located at 4 Hutton Centre, Suite 800, Santa Ana, CA 92707. tel: 714-445-4400. fax: 714-445-4404. Visit StarBase's web site at www.starbase.com. StarBase and its product names are trademarks of StarBase Corporation. All other products are trademarks of their respective owners.