Affinity Technology Issues Convertible Notes.Business Editors/High Tech Writers COLUMBIA, S.C.--(BUSINESS WIRE)--June 4, 2002 Affinity Technology Group, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : AFFI) today announced that it has issued convertible notes in the aggregate amount of $830,000. The notes were issued in a private placement transaction with a group of investors that included Joseph A. Boyle, the Company's Chairman, President and Chief Executive Officer, who acquired a $125,000 note, and an 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. , which acquired a $205,000 note as payment in full of all amounts outstanding under the $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. previously issued by the Company. The transaction generated approximately $625,000 in fresh capital for the Company. The convertible notes mature in two years, are convertible into the Company's common stock at $.20 per share, and are secured by all the outstanding stock of the Company's wholly-owned patent licensing subsidiary, decisioning.com, Inc. Mr. Boyle stated, "Over the past 30 months we have executed a downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing plan with the ultimate goal of positioning the Company to execute a patent licensing strategy as the Company's primary business activity. During that period most of the Company's cash resources were used to satisfy existing obligations; however, we have been able to reduce cash usage by about 90% from where we started. This issuance of the convertible notes is a significant event and further positions the Company to move forward in a less capital-intensive business." The convertible notes that have been issued by the Company have not been registered under the Securities Act of 1933 and may not be offered or sold absent registration or an applicable exemption from the registration requirements. 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. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion