Affinity Technology Group Signs $1 Million Convertible Debenture Agreement.Business/Technology Editors COLUMBIA, S.C.--(BUSINESS WIRE)--Sept. 22, 2000 Affinity Technology Group, Inc. (Nasdaq: AFFI) today announced that it has entered into a $1 million convertible debenture Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. purchase agreement with an international institutional investor Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. . Under the terms of the agreement, Affinity will issue to the investor an 8% convertible debenture in the principal amount of $1 million and a three-year warrant to acquire 200,000 shares of the company's common stock at a price per share based on the average market price of Affinity stock at the time of closing. The debenture debenture (dəbĕn`chər), document acknowledging indebtedness. In Great Britain a debenture is practically the same as a bond, and debenture stock is similar to preferred stock. is convertible, at the option of the investor, into shares of Affinity stock at a price equal to the lesser of $1 per share or a percentage of the average market price of Affinity stock at the time of conversion. The debenture will mature in 18 months after issuance, subject to earlier conversion and certain prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. terms. The Company will file a registration statement with the Securities and Exchange Commission to register the shares which may be issued in conjunction with the debenture purchase agreement. The debenture purchase agreement requires that funding occur upon the earlier of 30 days after the Company files its registration statement or upon the effectiveness of the registration statement, subject to the continued accuracy of the representations and warranties made by the Company in the agreement. Joe Boyle, President and Chief Executive Officer of Affinity, said, "As we have previously stated, we will continue to evaluate capital-raising alternatives to meet the short-, intermediate-, and long-term capital needs of the Company. This agreement is an integral part of our overall capital plan, especially for our short-term working capital goals." About Affinity Technology Group, Inc. Affinity's technology enables financial institutions to link their branches, call centers, Internet customers, and indirect agents electronically to their credit departments, providing fully automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. lending - and, if necessary, connectivity to a loan officer - through every channel. For financial institutions, Affinity's solutions expedite ex·pe·dite tr.v. ex·pe·dit·ed, ex·pe·dit·ing, ex·pe·dites 1. To speed up the progress of; accelerate. 2. loan decisioning and processing and increase productivity and capacity of branch personnel, call center agents, loan officers, and indirect agents, while improving the overall customer experience. Affinity is located on the World Wide Web at www.affi.net. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. in this news release are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that these statements involve several risks and uncertainties that may cause actual results to differ materially from those projected. The closing of the $1 million financing described in this press release is subject to several conditions, including the continuing accuracy of the representations and warranties made by the company in the financing agreement. For example, a material negative development involving the company may cause the company's representations and warranties to become inaccurate. |
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