Correctional Systems Inc. Announces Federal Contract Award and Issuance of $2.22 Million of Convertible Preferred Stock.SAN MARCOS San Marcos (săn mär`kəs). 1 City (1990 pop. 38,974), San Diego co., S Calif., a northern suburb of San Diego; settled 1880s, inc. 1963. , Texas--(BUSINESS WIRE)--Aug. 4, 1998--Correctional Systems Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:CRXS) announced today that it has been awarded a federal contract to manage a Community Corrections Center for the Bureau of Prisons in the McAllen, Texas, area. The award is for two years with three one-year options to renew. The initial contract period is expected to generate over $1 million in revenues for Correctional Systems Inc. T. Warren Investments is designing, building and financing the Community Correctional facility. John R. Forren, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Correctional Systems Inc. said, "We are pleased with this award and look forward to continuing working with the Federal Bureau of Prisons Noun 1. Federal Bureau of Prisons - the law enforcement agency of the Justice Department that operates a nationwide system of prisons and detention facilities to incarcerate inmates sentenced to imprisonment for federal crimes BoP ." Correctional Systems Inc. also announced today that it has completed a private placement of Convertible Series A 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. to a group of equity funds for a purchase price of $2.22 million. The proceeds from this funding will be used to complete the previously announced acquisition of Sentencing Concepts Inc., provide funds for future acquisitions and provide general working capital. Dan Verwiel, the chief executive officer of Sentencing Concepts Inc. and a pioneer in alternative sentencing, and Gary Maynard, an independent director with the University of Oklahoma University of Oklahoma, abbreviated OU, is a coeducational public research university located in the U.S. state of Oklahoma. Founded in 1890, it existed in Oklahoma Territory near Indian Territory 17 years before the two became the state of Oklahoma. Department of Corrections and Public Safety Program, along with a representative of the investor group were elected to the Board of Directors. The existing Board members, consisting of L. G. "Bud" Grossman, William Garrison and John Forren, each of whom has expertise in managing correctional facilities, were re-elected at the Company's annual meeting held July 29, 1998. Correctional Systems Inc. and Sentencing Concepts Inc. provide cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. management of adult correctional facilities and provide alternative programs including electronic monitoring and counseling programs. The Company's current management team has over 250 years of combined hands-on experience in correctional management. This press release 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. regarding future events. Actual results could differ from those contained in these forward-looking statements due to certain factors, including business and economic conditions and availability of financing.
CONTACT: Correctional Systems Inc., San Marcos
L. G. "Bud" Grossman, 800/352-4287
lgross4430@aol.com
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