Avalon Correctional Services, Inc. Completes $15 Million Million Private Placement Financing.OKLAHOMA CITY--(BUSINESS WIRE)--Sept. 17, 1998--Avalon Correctional Services, 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 :CITY), a private corrections company focusing on consolidating the community corrections industry, announced today that it has completed a $15,000,000 subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". and equity private placement with Rice Sangalis Toole & Wilson. The Company said the 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). from the offering will be used primarily to expand its presence in the industry through expansion of existing and new programs and facilities, acquisitions and working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. for the Company's planned revenue growth. Donald E. Smith, chief executive officer of Avalon, stated, "The excellent response to this placement validates our Company's strategy of consolidating the highly fragmented community corrections industry, a $4 billion market annually 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. . After reviewing a considerable number of financing options, we concluded that this transaction is the most beneficial to the Company and our shareholders." "We have been very pleased with the principals of Rice Sangalis Toole & Wilson who have recently concluded a review of the Company and an analysis of the market for our industry. We are pleased with their commitment to Avalon and confidence in our pursuit of quality acquisitions," noted Smith. Legg Mason Founded in 1899, Legg Mason, Inc. (NYSE: LM) is a leading Global Asset Management Firm that serves the institutional, mutual fund and wealth management markets. The firm is headquartered in Baltimore, Maryland, and is located on Lombard and Charles Streets in the Legg Mason Wood Walker, an investment banking firm headquartered in Philadelphia, served as the financial advisor and placement agent for Avalon. Avalon Correctional Services, Inc. is a leading developer and manager of privatized community correctional facilities in the United States. Avalon provides a diverse range of programs and services to local, state, and federal government agencies. Avalon currently has 14 contracts In four states with a total of 1110 corrections beds. This press release contains 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. regarding future events and future performance of the company that involve risks and uncertainties that could materially affect actual results. Investors should refer to documents that the company files from time to time with the Securities and Exchange Commission for a description of certain factors that could cause actual results to vary from current expectations and forward-looking statements contained in this press release. |
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