CellPoint Continues Negotiations with Castle Creek to Restructure Convertible Debt.Business Editors LONDON--(BUSINESS WIRE)--July 2, 2001 CellPoint Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CLPT) (STOCKHOLM:CLPT.), a global provider of mobile location technology and services, announces that the Company is still in negotiations to restructure the $10 million in convertible notes owned by Castle Creek Castle Creek may refer to:
This restructuring is part of a comprehensive plan for the Company's overall current and future financial requirements. "The floating convertible has caused a lot of concern in the investment community and both Castle Creek and we understand that the original structure has to change," said Peter Henricsson, Chairman 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 CellPoint Inc. "We have had a lot of feedback from our stockholders and are working toward terms acceptable for Castle Creek, existing stockholders and new investors." Upon concluding the agreement on the restructuring, CellPoint has an agreement in place for a new private placement that will close within three weeks. Concurrently with the Castle Creek negotiations, the Company is also in discussions with several groups whose involvement will give the Company the added strength going forward. The objective is not only to provide financing when needed but also to attract more institutional ownership, broaden CellPoint's visibility and increase the executive management and board resources. All of these components need to come into place to ensure that the Company has the right structure to reach profitability as quickly as possible. One component of this future structure has already been put in place, in May this year. "We've negotiated a $20 million equity line with a US- based institutional investor Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. ," continued Henricsson. The commitment allows CellPoint to draw-down funds by selling common stock over the next two years. The Company would set the stock price minimum in any given month so would never be forced to raise funds below a certain level of acceptability. "It is entirely up to CellPoint when and if we would use any part of this $20 million equity line over the next 24 months." "We're committed to returning maximum stockholder value and have tremendous support from our stockholders in resolving this situation with Castle Creek - the underlying business in this Company is excellent and that is really what CellPoint is all about," said Henricsson. "We are unable to disclose specific details to stockholders during this period due to the ongoing negotiations." CellPoint Inc. (Nasdaq and Stockholm OM Exchange: CLPT, www.cellpoint.com) is a US company with subsidiary operations in Sweden, Great Britain Great Britain, officially United Kingdom of Great Britain and Northern Ireland, constitutional monarchy (2005 est. pop. 60,441,000), 94,226 sq mi (244,044 sq km), on the British Isles, off W Europe. The country is often referred to simply as Britain. and South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. delivering location and wireless telemetry telemetry Highly automated communications process by which data are collected from instruments located at remote or inaccessible points and transmitted to receiving equipment for measurement, monitoring, display, and recording. services in cooperation with cellular operators worldwide. CellPoint's end-to-end cellular location technology offers a high-capacity solution for multi-vendor, unmodified Adj. 1. unmodified - not changed in form or character unqualified - not limited or restricted; "an unqualified denial" modified - changed in form or character; "their modified stand made the issue more acceptable"; "the performance of the modified aircraft GSM networks and uses standard GSM or WAP phones and standard Internet services. Several commercial applications are available for business and personal location services See mobile positioning. including Resource Manager for mobile resource management, iMate for location-sensitive information and Finder, an application for locating friends and family. Subsidiary Unwire's programmable telemetry terminal servers are also integrated with the CellPoint System Platform enabling a broad range of applications for wireless remote management and control. CellPoint(TM), Finder, Resource Manager, iMate and CellPoint Systems(TM) are trademarks of CellPoint Inc. Forward-looking statements in this release are made pursuant to the 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. provisions of the Private Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Act of 1995. Actual results may differ materially from those projected in any forward-looking statement. Investors are cautioned that such forward-looking statements involve risk and uncertainties which may cause actual results to differ from those described. Copyright (c) CellPoint Inc. 2001 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net ----------------------- |
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