ACT Teleconferencing Successfully Completes Rights Offering; 79,600 Series AA Preferred Shares Sold Generating $7.96 Million for the Company; Company Pays off $7 Million Bridge Loan with Proceeds.DENVER -- ACT Teleconferencing, Inc. (Pink Sheets:ACTT ACTT n abbr (BRIT) (= Association of Cinematographic, Television and Allied Technicians) → sindicato de técnicos de cine y televisión ), an independent worldwide provider of audio, video and web-based conferencing products and services, today announced the successful completion of its rights offering and the repayment of its $7 million bridge loan, plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. , to Dolphin Direct Equity Partners, LP ("Dolphin"), a New York-based private equity fund. On June 30, 2005, the Company entered into a Purchase Agreement with Dolphin providing for the sale of up to 160,000 shares of Series AA Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". priced at $100 per share to generate proceeds of $16 million. Dolphin purchased 80,400 shares of the stock in a private offering on August 19, 2005. The remaining 79,600 shares were sold in a rights offering commencing January 17, 2006, and expiring on February 21, 2006. Common shareholders purchased 13,622 shares of Series AA Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. in the rights offering. After exercising its over-subscription rights for the balance of the shares, Dolphin owns approximately 46.5% of the Company's Common Stock on a converted basis and based on the stated value Stated Value A value that, instead of being par value, is assigned to a corporation's stock for accounting purposes. Stated value has no relation to market price. Notes: of each share of the Series AA Preferred Stock. Proceeds of $7.96 million were generated from the sale of 79,600 shares of the preferred stock. The Company used the proceeds to satisfy the $7 million bridge loan from Dolphin, plus accrued interest. The balance of the funds will be used for working capital and to pay expenses related to the rights offering. "Last year at this time, we had over $14 million of debt. With the completion of the rights offering, we have satisfied the majority of our debt," said ACT Teleconferencing's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Gene Warren Gene Warren, Sr. (born 12 August 1916) won an Academy Award for the special effects on George Pal's The Time Machine in 1960. He also contributed to such projects as Land of the Lost, The Man From Atlantis and The Crow: City of Angels. . "Dolphin continues to support the Company and its shareholders, as we turn our primary focus to introducing new products, expanding our sales channels, and growing our customer base." This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities. Statements made in this news release that are not historical facts may be forward-looking statements. Actual results may differ materially from those projected in any forward-looking statement. Important factors that could cause actual results to differ materially from those anticipated by any forward-looking information include, but are not limited to, future economic conditions, competitive services and pricing, new competitor entry, financing, the delivery of services under existing contracts and other factors. For a more detailed description of the factors that could cause such a difference, please see ACT's filings with the Securities and Exchange Commission. ACT disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. About ACT Teleconferencing Established in 1990, ACT Teleconferencing, Inc. is a leading independent worldwide provider of audio, video and web-based conferencing products and services to corporations, educational organizations and governments worldwide. ACT has integrated global audio and videoconferencing platforms that provide uniform international services, customized uniform billing, managed services An umbrella term for third-party monitoring and maintaining of computers, networks and software. The actual equipment may be inhouse or at the third-party's facilities, but the "managed" implies an ongoing effort; for example, making sure the equipment is running at a certain quality , and local language services. The Company has an international video presence with three global video conferencing See videoconferencing. (communications) video conferencing - A discussion between two or more groups of people who are in different places but can see and hear each other using electronic communications. call centers located in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe and Asia Pacific. The Company's headquarters are located in Denver, Colorado, with operations in Australia, Belgium, Canada, France, Germany, Hong Kong, Singapore, the U.K. and the U.S., and virtual locations throughout the world, including Japan, China, Taiwan, Indonesia, Spain, Sweden, Switzerland, Russia, Poland and South Africa. ACT's Internet address is www.acttel.com. |
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