AuthentiDate Holding Corp. Closes $1.5 Million Financing with Euram Capital Strategies.Business Editors NEW YORK--(BUSINESS WIRE)--May 30, 2001 AuthentiDate Holding Corp. (Nasdaq: ADAT (Alesis Digital Audio Tape) A digital audio recording technology from Alesis, LLC, Cumberland, RI (www.alesis.com). In 1992, Alesis introduced the first 8-track digital tape recording system. ), the parent company of AuthentiDate(TM), Inc., the Trusted Content Authority(TM), today announced that it has obtained $1,500,000 in gross proceeds from a private financing with Euram Capital Strategies Fund (A), Ltd. Under the terms of the equity transaction, which were the same terms used in the private financing transaction with Banca del Gottardo announced earlier this month, the Company sold 1,500 shares of Series C 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". and warrants to purchase 31,000 of Common Stock. The 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. pays an annual 4% dividend, payable in cash or stock at the Company's election, until conversion or redemption. The conversion price is not subject to any resets or adjustment for changes in the market price of the Company's Common Stock. The Preferred Stock is convertible into Common Stock at $4.845 per share and the warrants are exercisable at $4.845 per share and exercisable for five years from the date of issue. "Euram Capital's investment is another endorsement of our business and growth strategy," said John Botti Raphael Jose Botti (born February 23, 1981) simply known as Botti, is a Brazilian professional footballer. He plays as a midfilder for Vissel Kobe. Botti is a hard-working and talented player who may not get on the scoresheet too often – just 14 times in his five years , 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. and Chairman of the Board of AuthentiDate Holding Corp. "Over the past couple of weeks, we have raised over $5.5 million, which adds further strength to our balance sheet and enables us to more aggressively grow our AuthentiDate division. With content security on the minds of all CIO's, we are working to position ourselves to become the leading service for authenticating and time stamping time stamping The stamping of order tickets with the time of entry and execution. For example, options exchanges require stamping of order tickets with the times of execution to the nearest minute. any type of electronic file that is transmitted over any type of network." The Company has agreed to register for resale the shares of Common Stock which may be obtained upon conversion of the preferred stock and exercise of the warrants. The Company is obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to file the registration statement within 180 days. The Company received approximately $1,450,000 in 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). after payment of commissions and expenses. The proceeds of this financing will be used to increase the business development, marketing and sales efforts for the AuthentiDate services, along with general working capital needs of the Company. The transaction was completed under Regulations S of the Securities Act of 1933. The securities sold in the offering are restricted securities under Regulation S and may not be sold or transferred in 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. for a period of one year, except pursuant to registration under the Securities Act of an exemption therefrom. AuthentiDate - "The Trusted Content Authority" As businesses move toward the need for secure and guaranteed content, AuthentiDate is positioning itself as the Trusted Content Authority. AuthentiDate's patent pending technology addresses the need for the verification of digital information in all business processes. The AuthentiDate solution will eliminate the possibility of altering any type of electronic file without detection, enabling users to authenticate a file's originality and true evidentiary ev·i·den·tia·ry adj. Law 1. Of evidence; evidential. 2. For the presentation or determination of evidence: an evidentiary hearing. Adj. 1. status, insured by all parties. By "AuthentiDating" electronic files, customers are provided a time and date stamped record of a file's content. At any time in the future, they are able to check a document, spreadsheet, e-mail, digital image and digital recording against the stored AuthentiDate code, to prove its originality. AuthentiDate(TM) Holding Corp. (Nasdaq: ADAT) operates three business units; AuthentiDate(TM) Inc., DocStar and DJS Marketing Group (d/b/a Computer Professionals International). AuthentiDate, Inc. has received patent-pending status for its innovative technology that can verify the authenticity of digital data with virtual certainty. DocSTAR is a complete, turnkey solution for storing and retrieving paper files electronically. DJS Marketing Group/Computer Professionals International performs computer integration services and sells computer products. Euram Capital Strategies Fund Limited Euram Capital Strategies (A) Fund Limited is an international investment fund that focuses on companies undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. in the market. |
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