Chadmoore Wireless Group closes $2.5 million financing; NASDAQ listing process accelerated.LAS VEGAS--(BUSINESS WIRE)--April 16, 1996--Chadmoore Wireless Group (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 BB: MOOR) today announced that it has completed a $2.5 million private placement of its Series A Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". with Flurina Development, S.A. of Zurich, Switzerland. Under the terms of the agreement, Chadmoore issued 250,000 shares of its Series A Convertible Preferred Stock to Flurina Development at a purchase price of $10.00 per share. The company received $2,275,956 net of expenses of $224,044, in exchange for the stock. In addition, the agreement calls for Chadmoore to issue warrants to purchase 150,000 shares of common stock at $5.00 per share. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. William Bossung, Chadmoore's director of corporate finance, "This private placement agreement will accelerate Chadmoore's NASDAQ Small Cap listing process. This is also a significant step in Chadmoore's overall financial development and it will now allow the company to negotiate favorable terms on a number of pending acquisitions." Bossung also pointed out that the $2.5 million private placement immediately escalates the construction schedule of Chadmoore's 800 MHz (MegaHertZ) One million cycles per second. It is used to measure the transmission speed of electronic devices, including channels, buses and the computer's internal clock. A one-megahertz clock (1 MHz) means some number of bits (16, 32, 64, etc. Specialized Mobile Radio See SMR. (SMR (Specialized Mobile Radio) The communications services used by police, ambulances, taxicabs, trucks and other delivery vehicles. Throughout the U.S., approximately 3,000 independent operators are licensed by the FCC to offer this service, which provides always-on ) operations throughout the Midwest and Southeast. SMR is one of the fastest growing types of "wireless" communications in the U.S. These systems currently provide service to more than 2 million radio users, with total industry sales of more than $200 million in 1994. Chadmoore and Motorola, Inc. (NYSE NYSE See: New York Stock Exchange - MOT) recently entered into a Purchase Agreement as part of a plan to develop a wide-area "digital" SMR system throughout the mid-South. Under the terms of the agreement released in February, Motorola agreed to supply its iDEN (integrated dispatch enhanced network) wireless communications technology as the core of Chadmoore's system, subject to financing approval. The digital network will allow instant communications via dispatch, messaging, data and mobile telephone service through the iDEN technology. CONTACT: Chadmoore Wireless Group, Inc. William Bossung Dir. of Corp. Finance 702/891-5255 |
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