Bronfman and Renaissance Fund Groups agree to invest in Geotek.MONTVALE, N.J.--(BUSINESS WIRE)--May 20, 1996--Geotek Communications, Inc., (NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). : NNM NNM Network Node Manager NNM NASDAQ National Market (financial) NNM National Nutrition Month (March; American Dietetic Association) NNM Naryan-Mar (Russia) NNM Net New Money :GOTK) (Pacific: GEO) announced today that entities affiliated with the Charles R. Bronfman family as well as the Jonathan Kolber family, together with the Renaissance Fund LDC LDC See: Less developed countries LDC See less developed country (LDC). and others have agreed in principle to invest between $45 million and $50 million in the Company. Certain other existing shareholders of the Company pursuant to existing co-investment rights, may invest an additional $5 million in the Company on the same terms offered to the other investors. Pursuant to the agreement in principle, Geotek will issue shares of a newly created series 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. that will be convertible into Common Stock of the Company at $11.00 per share. The 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. will pay a dividend, payable in common stock, at a rate of 10% per annum Per annum Yearly. . In connection with this transaction, the Company will issue warrants to purchase between 1.35 million and 1.65 million shares of the Company's Common Stock at an exercise price of $11.00 per share to the investors. The proposed transaction is subject to approval by the Company's shareholders of a proposal to increase its authorized shares of Common Stock and various other customary conditions including the negotiation and execution of definitive agreements acceptable to all of the parties and the completion of legal due diligence. "Interest in our FHMA FHMA Frequency Hopping Multiple Access FHMA Family Housing Management Account FHMA Florida Hotel and Motel Association (now Florida Lodging Association) FHMA Frequency Hop Multiple Access (TM) networks, products and services continues to intensify," said Yaron Eitan, President & 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. of Geotek Communications. "Our clear strategic focus, high- quality services and low-cost network, position us strongly in the wireless market for mobile business solutions." "The ability to raise capital is an important milestone which we continue to meet," added Michael McCoy, Chief Financial Officer. "The capital raised in this transaction will support our rapid growth and aggressive network deployment in the United States." Geotek, an international provider of integrated voice and data solutions for mobile business users, recently began offering wireless communications services to fleets of commercial vehicles, over its FHMA(TM) based networks, in five major markets-New York, Philadelphia, Washington, D.C./Baltimore, Boston and Miami. Geotek plans to build networks in over 35 major U.S. markets and was recently awarded a license to build a FHMA(TM) network in Canada. Geotek Communications, Inc. is an international wireless telecommunications company that focuses on network equipment, development and operation. CONTACT: Geotek Communications Inc., Montvale Randy Miller, 201/930-9305 or Morgen-Walke Associates Inc., New York Andrea Mabel, 212-850-5600 (national/financial press) Lee Foley, 212/850-5600 or (technology/industry/trade press) Edelman Public Relations Robert Zimmerman, 212/704-8285 |
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