Datascension, Inc. Announces Financing for Expansion and Recapitalization; Recapitalization Estimated to Produce Cost Savings of $650,000 Per Annum and Increased Revenue Potential of over $10,000,000 Per Year.BREA, Calif. -- Company Receives Commitments from Major Shareholders to Hold Stock Datascension, Inc., (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :DSEN) a premier data solutions company today announced that it has received a total commitment of $4.3 million of financing which will be used to expand capacity, hire additional personnel and redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. existing debt that carries above average interest rates, as well as redeem existing long term financing that coverts coverts see remex. into the common stock of the Company at a below market price. As part of the financing, the Company arranged a $1.5 million line of credit for expansion, which draws interest at the rate of 7.5% per annum Per annum Yearly. and will be utilized to payoff certain leases and short term debt carrying interest rats at an average rate of 15% per annum. Furthermore, it enables the Company to initiate the construction of its new facility which will enable the company to recognize substantial savings in rent and facilities management The management of a user's computer installation by an outside organization. All operations including systems, programming and the datacenter can be performed by the facilities management organization on the user's premises. . This transition, once completed, is expected to save the Company in excess of $400,000 annually. The initial draw against the new credit line was taken this week and is being used to pay a portion of the expenses associated with the new facility. The Company has also received a commitment for approximately $2.8 million which will be utilized by the Company to redeem its current long term debt which is convertible at an average of 15% below the current bid price of the Company's stock. The replacement financing is convertible at $.50 per share into restricted stock, which was above the market of the Company's stock when the agreement was negotiated. It is estimated by the Company that the new financing will save several million shares of dilution to the existing shareholders of the Company. Based upon the new financing and an emphasis by the Company and its advisors to actively inform the investment and brokerage community of its significant business advances, the Company has received commitments from the major shareholders of the Company to restrict their free trading shares to a very limited volume per month equal to less than 2% of the outstanding shares retained by those shareholders. The shareholders agreeing to this retention and leak-out agreement total over eight million free trading shares of the Company's stock and constitute well over 75% of the available float. This agreement gives assurance to the market that the majority shareholders of the Company support the long-term plans of the Company and its management. Scott Kincer, Datascension's President, stated, "We started 2006 with several goals in mind. One was to secure a non-dilutive financing in order to execute our expansion and cost reduction plan. The second was to replace our long term financing with one that was substantially less dilutive to our existing shareholders. Finally, we were committed to implementing a program to communicate the Company's achievements to the investment community on a regular basis, and assure the market that a majority of our shareholders have a commitment to the Company over the long term. We believe the agreements that we are announcing today validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data our strategy and accomplish these goals. We expect to begin realizing these savings this quarter, and see them accelerate in the third and fourth quarters." About Datascension Datascension, Inc. is engaged in the collection, storage and processing of data and conducting outsourced market research with operations in California, Costa Rica Costa Rica (kŏs`tə rē`kə), officially Republic of Costa Rica, republic (2005 est. pop. 4,016,000), 19,575 sq mi (50,700 sq km), Central America. and the Dominican Republic Dominican Republic (dəmĭn`ĭkən), republic (2005 est. pop. 8,950,000), 18,700 sq mi (48,442 sq km), West Indies, on the eastern two thirds of the island of Hispaniola. The capital and largest city is Santo Domingo. . Datascension is rapidly becoming one of the largest Spanish-speaking call centers in the world. The Company's commitment to customer service, quality and on-time project management has fostered its world-class reputation among major market research firms and corporate market research departments. For further information: www.datascension.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Regarding 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. : Statements about Datascension's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. Datascension's actual results could differ materially from expected results. Datascension undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Should events occur which materially affect any comments made within this press release; Datascension will appropriately inform the public. |
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