Ashton Technology Group, Inc. Completes $20 Million Private Placement.PHILADELPHIA--(BUSINESS WIRE)--Aug. 19, 1999-- The Ashton Technology Group, Inc. (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 Small Cap: ASTN ASTN Automatic Switched Transport Network (optical networks) ASTN Automatically Switched Transport Network (ITU-T) ASTN Automotive Satellite Television Network ASTN Astern ASTN Astronomic ) today announced completion of a $20 million private placement of its Series F 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". through a sale to an investment fund managed by Rose Glen Capital Management L.P., Bala Cynwyd, PA. "The funding from this financing combined with existing cash on hand significantly strengthens our balance sheet," said Arthur Bacci, Ashton's President and Chief Financial Officer. "The rapid pace of change in the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. market underscores our strategy of developing advanced technology to enhance doing business in this environment. The additional funds will enable us to accelerate development of our trading systems The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. which we anticipate will form the technical backbone of NextExchange as well as our transactional web site, eMC(TM) , which will be targeted at mid-sized financial institutions seeking to electronically distribute products and services." The private placement consists of 20,000 shares of 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. and warrants to purchase 200,000 shares of Ashton common Coordinates: Ashton Common is a hamlet in Wiltshire, England, located on the Common Hill a little south of the A350 road. The hamlet belongs to the civil parish of Steeple Ashton. stock. The preferred stock is convertible into common shares of Ashton at a conversion price of 110% of the average closing bid price of Ashton's common stock during the ten trading days In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. ended August 17, 1999, subject to certain adjustments based upon the future market price of Ashton's common stock. The preferred stock is subject to redemption at the Company's option if the market price of the common stock falls below certain thresholds. The exercise price of the warrant is $12.26 per share (125% of the average closing bid price of Ashton's common stock during the ten trading days ended August 17, 1999). Ashton has agreed to register, under the Securities Act of 1933, the resale of the common stock issuable upon conversion of the preferred stock and exercise of the warrants. Rose Glen Management L.P. was established in 1996 to make direct investments in public companies. Since inception, assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. have grown to approximately $500 million. Rose Glen invests in publicly-traded companies with promising growth potential and superior management. The Ashton Technology Group, Inc. is developing a family of on-line transaction systems using advanced telecommunication technologies, computing technologies, together with data and information security technologies to facilitate global financial transactions. Ashton's proprietary transaction systems are made available to end users through proprietary networks, third parties, and the Internet. The forgoing news release contains forward looking statements based on current management expectations, including the expected use of proceeds, projected costs of technology development, changes in business strategy and development plans, and the performance of the Company's common stock. A discussion of other factors which may cause actual results to differ from current expectations can be found in Ashton's reports filed with the SEC. |
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