CellPoint To Eliminate All Outstanding Short Term Debt; Debt Holders to Convert to Equity, Remainder Extended Two Years.Business Editors NEW YORK--(BUSINESS WIRE)--March 11, 2002 CellPoint Inc. (Nasdaq: CLPT), a global provider of mobile location software technology and platforms, has concluded negotiations to eliminate short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. held by Castle Creek Technology Partners and all other debt holders. In the terms accepted late Friday last week, half of all outstanding debt and interest instruments held by each debt holder, approximately $5.5 million, will be converted to equity at 78 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , which is a 50% premium to the latest market closing price. All remaining debt has been renegotiated to long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and is not due until March 2004. These agreements are subject to a settlement being negotiated in parallel with the rest of the Company's creditors. "The Company and its debt holders realized that the short-term debt had been an obstacle for interested parties such as new investors, strategic partners as well as customers and we have worked cooperatively to repair this," 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. "This financial restructuring of CellPoint is the final part of the restructuring work we commenced last summer," said Henricsson. "The reason that this reconstruction has been possible is that the Company's business plan and position in the market are fundamentally sound and that there is a strong belief among all stakeholders that the future for CellPoint is bright based on this financial restructuring. The restructured company will have no short term debt, lower payables and a very focused and efficient organization going forward." The Company will disclose publicly further details of the final restructuring once a settlement with existing creditors is concluded. CellPoint Inc. (Nasdaq and Stockholmsborsen: CLPT) is a leading global provider of location determination technology, carrier-class middleware and applications enabling mobile network operators rapid deployment of revenue generating location-based services for consumer and business users and to address mobile E911/E112 security requirements. CellPoint's two core products, Mobile Location System (MLS See multilevel security. ) and Mobile Location Broker (MLB MLB Major League Baseball MLB Minor League Baseball MLB Middle Linebacker (football) MLB Motor Life Boat MLB Matt Leblanc (actor) MLB Mother Love Bone (band) ), provide an open standard platform adapted for multi-vendor networks with secure integration of third-party applications and content. CellPoint's location platform handles over 500,000 location requests per hour and has a seamless migration path to GPRS (General Packet Radio Service) The first high-speed digital data service provided by cellular carriers that used the GSM technology. GPRS added a packet-switched channel to GSM, which uses dedicated, circuit-switched channels for voice conversations. and 3G. CellPoint's early entry and experience with European mobile operators has allowed the development of products and features that address key requirements such as active and idle mode positioning, international roaming, multiple location determination technologies and consumer privacy. CellPoint is a global company headquartered in Kista, Sweden. For more information, please visit www.cellpoint.com. 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. Copyright (c) CellPoint Inc. 2002 |
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