Cerplex completes $8 million private investment.TUSTIN, Calif.--(BUSINESS WIRE)--June 11, 1996--The Cerplex Group 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 : CPLX) a leading independent provider of electronic parts repair and logistic lo·gis·tic also lo·gis·ti·cal adj. 1. Of or relating to symbolic logic. 2. Of or relating to logistics. [Medieval Latin logisticus, of calculation services outsourcing, Tuesday announced that it has completed an $8 million private placement of Series B 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. led by four investment companies - Standard Pacific Capital, The Sprout Group, Peak Investment and Whitman Securities Inc. Of the four, Sprout is an existing and long-standing investor in the company. A principal of The Sprout Group, Robert Finzi, is a member of Cerplex's board. The Preferred Stock is being sold at a price of $1,000 per share. Twenty-five percent of the proceeds are being used to repay outstanding bank debt and it is currently anticipated that the remainder will be used for general corporate purposes. The Preferred Stock is convertible into Common Stock at the lower of $5.07 per share or 80% of the average closing bid price over the ten-day trading period ending three days prior to the date of conversion of the Preferred Stock. The Preferred Stock has certain rights, privileges and preferences, including a $2,000 per share preference in the event of a sale of the company. In connection with the investment, Cerplex has committed to register the Common Stock issuable upon conversion of the Preferred Stock. Due to losses in 1995, the company's tangible net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. had fallen below the minimum requirements for listing on the Nasdaq National Market, and the financing brings the company back into compliance with these listing requirements Listing requirements Requirements, including minimum shares outstanding, market value, and income, that are laid down by an exchange for any stock to be listed for trading. . "We believe this equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. is an indication of the level of confidence that highly respected investors have in the company," reported James T. Schraith, 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 Cerplex. "We are pleased to have both existing and new investors participate. The equity financing strengthens the company's balance sheet and the additional working capital enhances our ability to implement our strategic plan." "We're very excited about the new management team at Cerplex," said Bob Finzi, general partner with The Sprout Group. "We have confidence in their strategy and market presence, and are encouraged by the direction and improvements the company has made." "The new equity provides the necessary working capital Cerplex expects to need for the company's operations for the balance of the year," Schraith commented, "and it will enable us to fund the necessary capital expenditures and start-up costs required for new programs we expect to be awarded to us during 1996." About Cerplex The Cerplex Group, Inc. is a leading independent provider of electronic parts repair and logistics services. The company has developed extensive capabilities in the repair, refurbishment re·fur·bish tr.v. re·fur·bished, re·fur·bish·ing, re·fur·bish·es To make clean, bright, or fresh again; renovate. re·fur , upgrade and testing of a wide range of electronic equipment for computers and peripherals, telecommunications and office automation markets. The company's key service offerings are depot repair, logistics services and spare parts Spare parts, also referred to as Service Parts is a term used to indicate extra parts available and in proximity to the mechanical item, such as a automobile, boat, engine, for which they might be used. Spare parts are also called “spares. management and sales, as well as a variety of ancillary services. The company's extensive network of domestic and European facilities enables it to service the diverse needs of leading electronic equipment manufacturers. The company's headquarters is located in Tustin, Calif., with service facilities throughout the U.S. and Europe. Visit Cerplex's homepage at www.cerplex.com -0- Note to Editors: This news story contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. which involve risks and uncertainties. The risks and uncertainties facing the company are discussed in the company's recent filings on Forms 10-Q and 10-K. The company's actual results may differ significantly from results discussed in the forward-looking statements. CONTACT: The Cerplex Group, Irvine Joan Kerr, 714/258-5162 jkerr@cerplex.com |
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