Jan 18, 2002 : Path 1 Obtains $10M Investment
📅 - Path 1 Network Technologies Inc. (path1.net), an provider ofvideo-over-IP technology, announced today that it has received a U.S.$10,000,000 equity line of funding, arranged by the New York investmentbanking firm, Jesup & Lamont.
According to Frederick A. Cary, Path 1 CEO, the funding may be used tosupport the company's operational needs over the next several quarters."This funding is important for Path 1 and the management of our cash flowthrough the year ahead. We intend to start drawing against the equity linefor no more than our current cash requirements for the near term with theability to consider larger draws as we anticipate and manage expected salesgrowth during the year ahead."
Mr. Cary added, "What is particularly attractive to the company is ourexclusive ability to control the timing of the investment based upon marketconditions and our own internal business needs while securing the commitmentfor the total investment amount of up to U.S. $10,000,000. The availabilityof this capital will be critical for us as we begin to move our videoproducts from beta trials to successful implementations and execute ourbusiness plan throughout 2002."
The funding arrangement is an important development for the company as italso announced that it has declared a default in its previous investmentagreement with R&S Invest, whose principal, Meeuwi deKraker, has failed topay any installment payments currently due under the U.S. $3.5 millioncontract. Path 1 is considering its rights under the contract.
According to the terms of the agreement, the investment is available forPath 1 to draw upon over a twenty-four month period. Path 1 can require theinvestor to buy requested amounts of common stock, at a contractuallydetermined market discount, throughout the term of the agreement once theSEC registration process for the shares has been completed. Path 1 continuesto explore additional financing avenues in order to, among other things,protect against possible delays in the registration process.
According to Frederick A. Cary, Path 1 CEO, the funding may be used tosupport the company's operational needs over the next several quarters."This funding is important for Path 1 and the management of our cash flowthrough the year ahead. We intend to start drawing against the equity linefor no more than our current cash requirements for the near term with theability to consider larger draws as we anticipate and manage expected salesgrowth during the year ahead."
Mr. Cary added, "What is particularly attractive to the company is ourexclusive ability to control the timing of the investment based upon marketconditions and our own internal business needs while securing the commitmentfor the total investment amount of up to U.S. $10,000,000. The availabilityof this capital will be critical for us as we begin to move our videoproducts from beta trials to successful implementations and execute ourbusiness plan throughout 2002."
The funding arrangement is an important development for the company as italso announced that it has declared a default in its previous investmentagreement with R&S Invest, whose principal, Meeuwi deKraker, has failed topay any installment payments currently due under the U.S. $3.5 millioncontract. Path 1 is considering its rights under the contract.
According to the terms of the agreement, the investment is available forPath 1 to draw upon over a twenty-four month period. Path 1 can require theinvestor to buy requested amounts of common stock, at a contractuallydetermined market discount, throughout the term of the agreement once theSEC registration process for the shares has been completed. Path 1 continuesto explore additional financing avenues in order to, among other things,protect against possible delays in the registration process.
Reads: 1983 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/path011802.cfm
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