Celerity Systems Announces New Financing.KNOXVILLE, Tenn.--(BUSINESS WIRE)--Oct. 26, 1999-- Celerity ce·ler·i·ty n. Swiftness of action or motion; speed. See Synonyms at haste. [French célérité, from Old French, from Latin celerit Systems, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CLRT CLRT Continuous Lateral Rotation Therapy CLRT Command Logistics Review Team CLRT Cranial Laser Release Technique ) today announced that it has entered into an equity line of credit financing through May Davis Group under which the Company may be able to draw, on a voluntary basis, amounts totaling up to $5 million. The amount available under the line at any time is based on a formula tied to the Company's average trading volume Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. and prior drawings, with a maximum possible draw of $500,000 in any 30-day period. For each draw, the Company will issue debentures convertible into common stock at a 25% discount to the market price. The line of credit may be used by the Company beginning on the effective date of a registration statement covering the common stock underlying the debentures and ending on September 30, 2000. "We continue to appreciate the support from May Davis Group," said Kenneth Van Meter, President and 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 Celerity. "They have done an excellent job of positioning our industry and company with their investors." The details of this transaction are described in the Company's Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filed October 8, 1999. About Celerity Systems, Inc. Celerity Systems is a provider of advanced digital set top boxes and video servers for the interactive television and high speed Internet markets, with successful deployments in six countries. Celerity can also provide end-to-end systems through strategic relationships with leading companies including Nortel, Battelle Laboratories, Innovacom, Fore Systems, Minerva Systems, and Cisco. Safe Harbor Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission. In addition there can be no assurance that the proposed merger will be consummated. |
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