Bill, your take on this financing for ALYD?
biz.yahoo.com
uesday March 9, 1:33 pm Eastern Time
Company Press Release
SOURCE: Alydaar Software Corporation
Alydaar Software Corporation Receives $3 Million
Investment from Credit Suisse First Boston Affiliate
CHARLOTTE, N.C., March 9 /PRNewswire/ -- Alydaar Software Corporation (Nasdaq: ALYD - news), d/b/a Information
Architects Corporation, today announced that it has completed a private placement of up to $10 million in original principal
amount of convertible exchangeable debentures (Debentures) to Marshall Capital Management, Inc., an affiliate of Credit
Suisse First Boston (CSFB). The investment will be made in three tranches: Tranche A for $3 million was completed on March
5, 1999; Tranche B for $2 million will automatically fund upon certain conditions being met, which the Company anticipates will
be met within 120 days and Tranche C for $5 million, at the Company's option, may, upon the meeting of certain conditions, be
funded on September 2, 1999 or up to six months thereafter. In addition to the issuance of the Debentures, the Company has
issued warrants to the investor(s) to purchase 30,000 shares of Common Stock for an exercise price equal to the initial
conversion price for Tranche A. The Company will also be required to issue additional warrants to purchase shares, if the
conditions are met and Company elects to sell securities for Tranches B and C.
The Tranche A and Tranche B Debentures are convertible into shares of Common Stock, beginning ninety days after issuance.
The initial conversion price for Tranche A and Tranche B will be equal to the lower of (i) 140% of the average closing bid price
for the Common Stock for the ten trading days prior to the Tranche A closing date ($12.73) or (ii) 104% of the average
closing bid price for the Common Stock for the ten trading days prior to the 90th day following the closing date. The
conversion price of the Debentures is subject to adjustment due to certain fluctuations in the closing bid price of the Common
Stock during certain periods of time and upon the occurrence of certain events. The Debentures accrue interest at the rate of
6% per annum.
Alydaar has the option, subject to the satisfaction of certain conditions (including shareholder approval authorizing issuance of
preferred stock), to require the holders of the Debentures to exchange the entire principal amount of the Debentures for shares
of a newly-created Series A Convertible Preferred Stock. The terms of the Preferred Stock will be substantially the same as
those of the Debentures.
Alydaar will use the proceeds of the sale from the Debentures for costs related to acquisitions, for working capital and general
corporate purposes.
About Alydaar
Headquartered in Charlotte, North Carolina, Alydaar Software Corporation is a worldwide developer of Enterprise
Information Portals. Alydaar recently announced a change in its name to Information Architects (IA), which more properly
describes the future business strategy for the Company. IA provides management consulting, design, development and the
deployment of Virtual Information Portal solutions. Additionally, IA assists organizations in transforming their current legacy
information systems architecture to support heterogeneous, scalable, flexible and ubiquitous Internet/Intranet architecture. IA
also offers Year 2000 services utilizing its SmartCode technology, remediating or auditing most computer languages on most
hardware platforms. IA's clients include 3M, Advanced Micro Devices, DuPont, Kelly Services, McDonnell-Douglas,
Nabisco, British Airways, Northern States Power , RJ Reynolds, TOTAL, OMG Worldwide, and Whirlpool, among others.
More information about Alydaar and Information Architects and its services can be found on the World Wide Web at
informationarchitects.com.
The statements made in this press release that are not historical facts contain ''forward-looking information'' within the meaning
of the Private Securities Litigation Reform Act of 1995, and Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, both as amended, which can be identified by the use of forward-looking terminology such as
''may,'' ''will,'' ''anticipates,'' ''expects,'' ''projects,'' ''estimates,'' ''believes,'' or ''continue,'' the negative thereof, other
variations or comparable terminology. Important factors, including certain risks and uncertainties, with respect to such
forward-looking statements that could cause actual results to differ materially from those reflected in such forward looking
statements include, but are not limited to, the impact of competitive products and services, the ability of customers to package
code in a timely manner, the Company's ability to manage growth and acquisitions of technology or people, diversification of
the Company's business, the effect of economic and business conditions, including risks inherent in international operations, the
ability to attract and retain technical personnel and other risks detailed from time to time in the Company's SEC reports. The
Company assumes no obligation to update the information in this release.
SOURCE: Alydaar Software Corporation
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