541,062 shares of escrowed contingent Class E Common Shares released from escrow.EL SEGUNDO El Segundo (ĕl sēgŭn`dō), industrial city (1990 pop. 15,223), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1917. Its products include navigation and computer systems, aircraft parts, office machines, telephone apparatus, and , Calif.--(BUSINESS WIRE)--Oct. 18, 1996--NetVantage Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :NETVA) on Friday announced that pursuant to the terms of the company's May 3, 1995, Initial Public Offering, 541,062 shares of the company's Class E Common Stock, previously held as Escrowed Contingent Shares, were released from escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. on Oct. 17 upon the company attaining defined market price levels. These shares will be converted to Class B Common Stock on a one-for-one basis and will enter the computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. of outstanding shares; Class B Shares cannot be transferred or sold unless they are converted first to Class A shares at the option of the holder. Substantially all holders are insiders or officers of the company, and any sales would be subject to the volume restrictions of Rule 144. The release of the Escrowed Contingent Shares held by current and former employees, officers, directors, consultants and their relatives, as described in Note 10 to Financial Statements in the company's Annual Report on Form 10-KSB for the year ended Dec. 31, 1995, is compensatory and will result in a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. to earnings in the company's fourth quarter ending Dec. 31, 1996 of approximately $4,082,000. A total of 540,995 Escrowed Contingent Shares remain in escrow and are subject to release only upon attaining specified earnings or market price goals as described in Note 10 referred to above. NetVantage develops, manufactures and markets high quality, technologically advanced Ethernet workgroup switching A network switch designed for LAN traffic within an enterprise. Contrast with carrier-class switch. systems designed to increase the information handling capacity of Local Area Networks (LANs) and for interfacing LANs to emerging standard public and private wide area networks (WANs) in a cost effective manner. CONTACT: Thomas Baker Thomas Baker or Tom Baker is a name shared by several notable persons: British people
NetVantage Inc. 310/726-4130 or Marty Tullio (investors) Owen Daley (media) Allen & Caron/South Coast Communications 714/252-8440 |
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