Compu-DAWN Provides $1 Million Financing to LocalNet Communications, Inc., a Telecommunications and Internet Services Marketing Business.CEDARHURST, NY--(BUSINESS WIRE)--Nov. 3, 1998--Compu-DAWN, 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 : CODI CODI Cornucopia Of Disability Information CODI Committee on Development Information CODI Customers of Dynix, Inc. (user group) CODI Consortium Omscholing Docenten Informatica (The Netherlands) ) (the "Company") today announced that it has loaned $1 million to LocalNet Communications, Inc., ("LocalNet"), an unaffiliated Florida corporation in the telecommunications and internet services marketing Services marketing is marketing based on relationship and value. It may be used to market a service or a product. Marketing a service-base business is different from marketing a product-base business. business. LocalNet signed 12%, one (1) year secured promissory notes promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. due in October 1999, at which time all interest and principal is payable. The notes are secured by a collateral interest in all of LocalNet's tangible and intangible assets and a pledge of the common stock owned by its Chief Executive Officer and the Chairman of its Board, which represent a 63.1% ownership interest in LocalNet, in the aggregate. In connection with the loan, LocalNet, and its Chief Executive Officer and Chairman (having an aggregate ownership of 63.1%), have each granted the Company a right of first refusal Right of First Refusal In general, the right of a person or company to purchase something before the offering is made available to others. Notes: For example, a football team may have the right of first refusal on a player's contract. to acquire LocalNet, or their equity interests in LocalNet, as the case may be, for a term expiring 90 days after the loan is repaid. The Company and LocalNet also entered into a five (5) year consulting agreement which provides for the Company to perform certain management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business service industry - an industry that provides services rather than tangible objects services for LocalNet. Under the consulting agreement the Company will, among other things, act as LocalNet's exclusive agent to find and negotiate telecommunications services reseller agency arrangements for LocalNet. Compu-DAWN, Inc. is in the business of designing, developing, licensing, installing and servicing computer application and communication software products and systems for law enforcement and other public safety agencies. The Company has developed, licensed and installed its system in more than 60 agencies, primarily located in the State of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and is actively pursuing use of its technology in other industries. This press release may include certain forward-looking statements about the Company that are based on management's current expectations. Actual results may differ materially as a result of any one or more of the risks identified in the Company's filings under the Securities and Exchange Act of 1934. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion