Beyond.com Receives $40 Million Commitment in Private Funding.Business/High-Tech Editors SANTA CLARA Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , Calif.--(BUSINESS WIRE)--Oct. 31, 2000 E-commerce services provider Beyond.com(TM)(Nasdaq: "BYND") today announced that it has received a commitment to provide the company with up to $40 million in private equity funding Equity funding An investment consisting of a life insurance policy and a mutual fund. The insurance policy is paid by the collateral value of fund shares, giving the investor the advantages of insurance protection with the growth potential of a mutual fund. . The funding agreement Funding Agreement Illiquid insurance contracts that provide guaranteed principal repayment and interest payments for a predetermined period of time. Notes: Funding agreements are marketed to mutual fund companies and municipal reinvestments. is from a private investment fund. This is a one-year agreement that can be extended for an additional year at Beyond.com's discretion. Under the agreement, Beyond.com will have the right (but not the obligation) to obtain as much as $40 million through the issuance of common stock to the fund in a series of drawdowns. The drawdowns are subject to the satisfaction of a number of conditions, including the filing of a registration statement with the Securities and Exchange Commission covering the resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. RESALE. of the shares. Pricing will be based upon the volume weighted average price of the company's stock during the investment period. Beyond.com's use of the funds will be for capital expenditures and working capital needs. "This is phase one of our financing plan," said Curtis Cluff, chief financial officer of Beyond.com. "Used judiciously ju·di·cious adj. Having or exhibiting sound judgment; prudent. [From French judicieux, from Latin i in combination with other planned financing, this facility will bolster our balance sheet as the company works towards its financial goals." "This type of financing will allow us to access committed capital in a series of smaller draws over time," Cluff explained. "We believe that this is an important part of our approach to maintaining adequate working capital while minimizing the dilutive impact on currently outstanding shares." The securities referred to herein will not be registered under the Securities Act of 1933 (the "1933 Act") and may not be offered or sold 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. without registration or the availability of an applicable exemption from registration requirements. This announcement does not constitute an offer to sell or the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of an offer to buy common stock of Beyond.com. About Beyond.com Beyond.com is an e-commerce services provider that builds, manages and markets online stores for businesses. The company also sells software and computer-related products to consumers and U.S. Government agencies. The company's BuyDirect Group provides eStores by Beyond.com, a suite of services that enables software developers, systems OEMs and hardware manufacturers to market and sell over the Internet. Beyond.com's Government Systems Group provides digital distribution of software and related services to a growing list of U.S. Government agencies. Beyond.com Corporation trades on the Nasdaq National Market under the symbol ("BYND"). More information on the company can be found in the company's filings with the Securities and Exchange Commission ("SEC"). Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Certain statements in this press release are forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These include statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc (i) Beyond.com's ability to satisfy the conditions necessary so that it can effect a drawdown Drawdown The peak to trough decline during a specific record period of an investment or fund. It is usually quoted as the percentage between the peak to the trough. Notes: and sell common stock (ii) Beyond.com's ability to secure its planned financing; (iii) the amount of control Beyond.com has over any dilutive impact to its stock. Such statements are subject to substantial risks and uncertainties, including the risk that the equity facility is limited by share price and volume. Actual results for the fourth quarter of 2000 and subsequent quarters could differ materially from any future performance suggested above. Factors that might cause such a difference include, but are not limited to, unforeseen market conditions that could impact the company's ability to control any dilutive impact, and the company's ability to remain in compliance with the terms of the equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. line, as well as other risk factors described in the company's filings with the SEC. Beyond.com news and product/service information is available at the company's World Wide website located at http://www.beyond.com. |
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