Applied Digital Closes $12 Million Debt Financing; Portion of Funding Repays $5.35 Million Convertible Financing, Reducing Potential Dilution.DELRAY BEACH, Fla. -- Applied Digital (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 : ADSX ADSX Applied Digital Solutions, Inc. (stock symbol) ), a leading provider of identification and security technology, announced today that it has closed a $12 million non-convertible debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay transaction with Satellite Senior Income Fund, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . Approximately $5.35 million of the proceeds will be used to fully satisfy outstanding (and potentially convertible) debt from the company's prior financing of June 10, 2005. The company will file a current report on Form 8-K providing additional detail. Commenting on the financing, Scott R. Silverman, Chairman and 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. of Applied Digital, stated, "We have always preferred traditional debt financing of this type. However, the financial status of the company has generally prevented us from procuring a straight debt facility. Now, with an improved balance sheet and with progress we have made in other areas, we have obtained this facility to pay off potentially convertible debt and to provide additional working capital for the continued growth of Applied Digital, VeriChip Corporation and our other subsidiaries." About Applied Digital - "The Power of Identification Technology" Applied Digital develops innovative identification and security products for consumer, commercial, and government sectors worldwide. The Company's unique and often proprietary products provide identification and security systems for people, animals, the food supply, government/military arena, and commercial assets. Included in this diversified product line are RFID (Radio Frequency IDentification) A data collection technology that uses electronic tags for storing data. The tag, also known as an "electronic label," "transponder" or "code plate," is made up of an RFID chip attached to an antenna. applications, end-to-end food safety systems, GPS/Satellite communications, and telecomm and security infrastructure, positioning Applied Digital as the leader in identification technology. Applied Digital is the owner of a majority position in Digital Angel Corporation (AMEX AMEX See: American Stock Exchange :DOC). Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and the Company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. |
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