Cadapult Announces Completion of $5.5 Million Private Placement.Business Editors ALLENDALE, NJ--(BUSINESS WIRE)--March 14, 2000 Cadapult Graphic Systems, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : GRFX GRFX Graphics GRFX Graphic Effects ), the premier provider of computer graphics technology and Internet services to creative professionals, announced today that it has completed a 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. private placement providing the Company with gross proceeds before expenses and commissions of $5.5 million. Brookstreet Securities acted as the Managing Dealer. "We are pleased to have the support of the investment community with both individual and institutional investors taking part in the offering. This funding has allowed us to complete the ultraHue acquisition which is expected to fuel a significant part of our future growth," stated Michael W. Levin, President and Chairman. The Company sold a total of 550,000 units, representing 550,000 shares of Class A Preferred stock, and 1,100,000 warrants to purchase shares of Cadapult common stock at $4.50 per share. 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). to the Company are estimated at $4,675,000. Additional plans to utilize the funds raised in the private placement include continual expansion of Cadapult's successful No-Cap Color free color printer A printer that prints in color using three (CMY) or four (CMYK) colors of ink, toner or dye. Four color ribbons have been used in dot matrix printers, but these are rare today. See color laser printer and printer. program, working capital and future acquisitions. About Cadapult Graphic Systems, Inc.: Cadapult Graphic Systems, Inc. is the premier provider of computer graphics technology and Internet based services to creative professionals. The Company is a diversified graphics technology organization that operates with three business units. The first, Media Sciences, Inc. is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. that manufactures and distributes color printer supplies worldwide; the second is a value added reseller See VAR. (company) value added reseller - (VAR, or "value added retailer") A company which sells something (e.g. computers) made by another company (an OEM) with extra components added (e.g. specialist software). and systems integration operation that provides computer graphics systems, peripherals, supplies and services to creative professionals; and the third is an Internet services group (eCadapult) that provides Internet based services to the same target market. Cadapult's headquarters are in Allendale, New Jersey Allendale is a borough in Bergen County, New Jersey, United States. As of the United States 2000 Census, the borough population was 6,699. Allendale was formed on November 8, 1894 from portions of Franklin Township, Hohokus Township and Orvil Township at the height of the with regional offices in Boston, Massachusetts, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , New York, Philadelphia, Pennsylvania and Redmond, Washington. For more information please visit the Cadapult web site at www.cadapult.com. This news release contains forward-looking statements and information that are based on management's beliefs, as well as assumptions made by, and information currently available to, management. These forward-looking statements are based on many assumptions and factors, and are subject to many conditions, including Cadapult's continuing ability to obtain additional financing, dependence on contracts with suppliers, competitive pricing for Cadapult's products, demand for the Cadapult products which depends upon the condition of the computer industry, and the effects of increased indebtedness as a result of the Company's business acquisitions. Except for the historical information contained in this news release, all forward-looking statements and information are estimates by Cadapult's management and are subject to various risks, uncertainties and other factors that may be beyond Cadapult's control and may cause results to differ from management's current expectations, which may cause actual results, performance or achievements of Cadapult to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. |
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