Citadel Computer Systems announces redemption of convertible debentures and preferred stock.DALLAS--(BUSINESS WIRE)--April 29, 1997--Citadel Computer Systems Inc. today announced that its Board of Directors has authorized the company to redeem all or a portion of its Convertible Redeemable Debentures and Series B 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". upon notice of conversion. The company also announced that it had completed a private placement of $500,000 of 8% Convertible Redeemable Debentures. The Board initially has authorized up to $1.5 million for redemption, in amounts, and at times, depending upon market conditions. Under the terms of the securities, Citadel has notified holders of its interest to redeem debentures in the amount of $300,000 in principal value plus 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. submitted for conversion. The company also announced that it has entered into a letter of intent with Institutional Investors 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. Consulting Company Noun 1. consulting company - a firm of experts providing professional advice to an organization for a fee consulting firm business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a (IICC IICC Insurance Information Centre of Canada IICC Improved Information and Coordination Central ), an investment banking group led by Len Chaikind, as an investment advisor Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and for the purpose of obtaining additional debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay to pursue the redemption program with respect to outstanding convertible securities and for working capital. Chaikind formerly administered the Shell Oil Company pension fund with over $10 billion in assets and is currently an advisor to pension funds and other institutional investors. Citadel Computer Systems is a developer and marketer of computer software products broadly characterized as network and PC security and management utilities and software management tools. Its products, including the Citadel Network Recovery System, NetOFF, Server Sentry, Phantom of the Console, WinShield, FolderBolt and NightWatch, are designed to better manage and provide additional security to individual PCs as well as local area networks using Novell and Microsoft network See MSN. Microsoft Network - The Microsoft Network operating software. -0- NOTE TO EDITORS: Statements contained in this news release that are not statements of historical fact may be construed as forward-looking statements and, as such, involve a number of risks and uncertainties. Actual results of future events in such forward-looking statements could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are the ability of the company to raise additional funds on acceptable terms and conditions, general economic and market conditions, and other factors that are set forth in the company's Forms 10-KSB and 10-QSB and other public filings with the Securities and Exchange Commission. CONTACT: Citadel Computer Systems Inc., Dallas Steven B. Solomon, 214/520-9292 http://www.citadel.com |
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