Avotus Receives Final Jefferson Advance; Financing Complete.Business Editors MISSISSAUGA, Canada--(BUSINESS WIRE)--Feb. 26, 2004 Avotus Corporation (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension Venture: AVS (Audio Video Coding Standard) A video compression technique developed by Chinese companies and supported by the Chinese government. Expected to provide better compression than MPEG-2, AVS was created to avoid paying royalties to the MPEG licensors, which are outside ) today announced that Jefferson Partners ("Jefferson") has invested a further $413,636 (US $310,227) in the Company by way of Series B convertible debentures 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. . This funding was made pursuant to the option granted by the Company to allow Jefferson to invest up to an additional $6 million (US $4,500,000) in addition to the completion of the Company's $6 million (US $4,500,000) Series A convertible debenture financing announced on April 22, 2003. With the completion of this transaction, Jefferson has now exercised its full option. Jefferson immediately exercised its option to convert the convertible debenture into convertible preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. of the Company. The conversion was effected in two tranches Tranches A piece, portion or slice of a deal or structured financing. This portion is one of several related securities that are offered at the same time but have different risks, rewards and/or maturities. "Tranche" is the French word for "slice". . The first tranche of $220,845 (US $165,634) was converted into convertible preferred shares at $0.185 per share for 1,193,757 shares and the second tranche of $192,791 (US $144,593) was converted into convertible preferred shares at $0.416 per share for 463,440 shares. The proceeds of the financing will be used for general working capital purposes. Jefferson now owns on a fully diluted basis approximately 55% of Avotus. About Avotus Avotus provides solutions that dramatically reduce the cost and complexity of enterprise communications. Intelligent Communications Management Communications management is the systematic planning, implementing, monitoring, and revision of all the channels of communication within an organization, and between organizations; it also includes the organization and dissemination of new communication directives connected with an (TM) is Avotus' unique model for a single, actionable environment that enables any company to bring together decision-critical information about communications expenses, infrastructure, and systems usage. Avotus is empowering Fortune 500 companies as well as more than 3,000 organizations worldwide to gain insight into and control over their communications environment. Whether deployed as an onsite or hosted application, or as a completely outsourced value-added solution, Avotus improves productivity and efficiency while enabling dramatic savings. The Company has been consistently recognized for product and service excellence and thought leadership for more than two decades in a wide range of communications-intensive markets. Avotus' solutions are strongly supported and endorsed by industry-leading partners such as Avaya, Cisco, and Nortel. For more information, visit www.avotus.com. Certain information contained in this news release is forward-looking and is subject to unknown risks and uncertainties. The actual results, performance or achievements of the Company may differ materially from the results, performance or achievements of the Company expressed or implied by such 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. . For further information, please visit the Company's website at www.avotus.com and its filings with SEDAR SEDAR System for Electronic Document Analysis and Retrieval SEDAR Southeast Data, Assessment, and Review available through www.sedar.com. The TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. has neither approved nor disapproved the contents of this press release. All trademarks are the property of their respective owners. |
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