ARC International Completes $3.5 Million Private Placement -- Financing to Support ARC's U.S. Ice Rink Development Program.TORONTO--(BUSINESS WIRE)--July 12, 1999-- ARC International This article is about the publicly traded processor company. For the privately held French housewares company of the same name, see ARC International (household). Corporation (AMEX AMEX See: American Stock Exchange : ATV (1) (Advanced TV) An early name for the digital TV standard proposed by the Advisory Committee on Advanced Television Service (ACATS). See ACATS. See also ATV Forum. (2) (Analog TV) Refers to the NTSC, PAL and SECAM analog TV standads. ), a developer and operator of skating facilities 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. , today announced that it completed the sale of a $3.5 million (U.S. dollars) principal amount 9% convertible subordinated debenture subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before , due July 9, 2004. Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the sale of the Debenture, which was privately placed, will primarily be used to complete construction of ARC's ice skating ice skating, gliding along an ice surface on keellike runners known as ice skates. Skating as a Sport Skating, besides being an important form of winter recreation and the essential skill in the game of ice hockey (see hockey, ice) has developed complex in Danbury, Connecticut “Danbury” redirects here. For other uses, see Danbury (disambiguation). Danbury is a city in Fairfield County, Connecticut, United States. It has an estimated population as of July 1, 2005 of 78,736. . ARC anticipates opening the facility in the Fall of 1999. The Debenture is convertible into ARC common shares at a price based on the lesser of: A) 101% of the average ten lowest per share closing prices for ARC common shares over the 30-day trading period immediately prior to conversion, or B) 120% of the per share closing price on March 6, 2000. ARC is required to make a cash payment based upon the principal amount so converted with each conversion of the Debenture. Interest on the Debenture is payable quarterly, commencing on September 30, 1999. Up to 25% of the aggregate interest payments may be paid, at ARC's option, in ARC common shares rather than cash. Under terms of the sale, the Debenture may not be converted before March 7, 2000. ARC retains the right to redeem the Debenture for cash at any time. The redemption price Redemption price See: Call price redemption price 1. The price at which an open-end investment company will buy back its shares from the owners. In most cases, the redemption price is the net asset value per share. 2. , which is at a premium to the face amount of the Debenture, is derived from a formula based upon the date on which the Debenture is redeemed. In connection with the sale of the Debenture, ARC issued the investor a warrant, expiring on July 9, 2002, to purchase 275,000 shares of its common stock at $2.00, 60% above ARC's July 9, 1999 closing price of $1.25. ARC has agreed to register the common shares underlying the Debenture and the Warrant under the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Securities Act of 1933, as amended. Arnold S. Tenney, Chairman, President and Chief Executive Officer of ARC, commented, "With this financing, ARC International will move forward with its U.S. expansion program and complete the construction of our Danbury, Connecticut facility. Looking forward, we will continue to refine operations at our Maryland, Virginia and Michigan locations to help each facility reach its fullest potential and put in place a capital structure that supports our long-term business plan." Additional information concerning the Debenture and Warrant sale will be contained in ARC's report on Form8-K filed pursuant to the Securities Exchange Act of 1934, as amended. ARC expects to file such a report later this month. ARC International Corp. is a leading developer and operator of, and full-service equipment supplier to, ice skating facilities in North America with six locations featuring 16 surfaces of ice. ARC also has significant equity holdings in Cabletel Communications Corp., Canada's leading supplier of broadband equipment, and Ballantyne of Omaha, America's leading manufacturer of motion picture projection and specialty entertainment lighting equipment. Additional corporate information is available at the Company's web site - http://www.arc-atv.com Except for the historical information in this press release, it includes forward-looking statements that involve risks and uncertainties, including, but not limited to, the commercial viability of its U.S. ice skating facilities, quarterly fluctuations in its subsidiary's operating results and other risks detailed from time to time in the Company's Securities and Exchange Commission filings. Actual results may differ materially from management expectations. |
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