CellPoint Restructures Convertible Notes.Business Editors LONDON--(BUSINESS WIRE)--Sept. 26, 2001 Notes Paid Down, Remainder in Fixed Convertible at $4.00 CellPoint Inc. (Nasdaq:CLPT), a global provider of mobile location technology and services, has entered into an agreement to restructure the convertible notes held by Castle Creek Castle Creek may refer to:
CellPoint will now pay $2.25 million to pay down a portion of the principal and accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. to date on the notes. The remaining outstanding notes will be subject to a fixed price of $4.00, and are scheduled to be retired in October of 2002 for approximately $6.1 million plus accrued interest. The outstanding notes are repayable in part or in whole at any time. "We worked with Castle Creek toward a further agreement to restructure the outstanding convertible notes and on terms that are acceptable for existing stockholders, new investors, and Castle Creek," 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 very much appreciate Castle Creek's flexibility in this situation. Castle Creek's support with this restructuring has enabled the company to move forward with its business plans. Castle Creek was particularly helpful in accepting a $4 fixed conversion price under this deal." Castle Creek is receiving a payment of $2.25 million immediately. CellPoint can now do initial closings this week on private placements in process for additional working capital where funds are already in escrow. With the maturity on the balance of the notes extended and CellPoint not required to make an additional payment on October 23, 2001, CellPoint will only be raising additional funds for working capital at this time. Under the terms of the new agreement, Castle Creek is scheduled to be paid approximately $6.1 million plus accrued interest at 6% in October 2002. The outstanding notes are convertible into common stock at $4.00 per share in the interim. CellPoint will file 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. with the SEC within 10 days that will include full details of the agreement with Castle Creek. Special Meeting of Stockholders Stockholders are urged to vote their proxies immediately on the proposal outstanding to approve private offering transactions involving the future issuance of common stock. The Special Meeting of Stockholders has been adjourned until at least 5.5 million votes are cast 'for' or 'against' the proposal. CellPoint Inc. (Nasdaq and Stockholmsborsen: 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 services See mobile positioning. in cooperation with cellular operators worldwide. CellPoint's end-to-end cellular location technology is a high-capacity system that works in 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 including Resource Manager(TM) for mobile resource management, iMate(TM) for location-sensitive information and Finder(TM), an application for locating friends and family. CellPoint(TM) 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. |
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