Hawaiian Natural Water Receives Commitment for $850,000 Equity Offering.HONOLULU--(BUSINESS WIRE)--Sept. 23, 1999-- Also Receives Option to Repurchase 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". Hawaiian Natural Water Company, 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 : HNWCC, HNWWC) announced today it has received a definite commitment for an $850,000 private offering of common stock and warrants. A total of $750,000 will be received from unaffiliated private investor(s) and the remaining $100,000 from the Company's chief executive officer, Marcus Bender. Mr. Bender has also been granted an option through January 2000 to invest an additional $100,000 on the same proportionate terms and conditions. The offering is expected to close within five business days. The offering involves the issuance of an aggregate of 850,000 shares of common stock at a purchase price of $1.00 per share. The investors have also been granted, for no additional consideration, 5-year warrants to purchase an aggregate of 850,000 shares of common stock at $1.00 per share, and 566,666 shares of common stock at $1.50 per share. The warrants are subject to standard anti-dilution protection, and are redeemable under certain circumstances. Hawaiian Natural Water also announced it has been granted an option to repurchase any or all of the 1,245 outstanding shares of Series A convertible preferred stock held by Amro International, S.A. The option is exercisable for 30 days, subject to extension for up to 10 business days under certain circumstances. Amro has agreed not to convert any shares of Series A preferred during the option period. As a condition to the grant of such option, the Company has agreed to repurchase currently 250 shares of Series A preferred for an aggregate of $250,000 and has also agreed to reduce the exercise price of the warrant held by Amro (to purchase 100,000 shares of common stock) from $1.25 to $0.25 per share. After giving effect to the foregoing transactions, the Company believes that it has sufficient stockholder's equity Stockholder's equity The residual claims that stockholders have against a firm's assets, calculated by subtracting all current liabilities and debt liabilities from total assets. to meet the tangible net worth Tangible Net Worth Total assets less intangible assets and total liabilities. Notes: In terms of a consumer, tangible net worth is the sum of all your tangible assets (cash, home, cars, etc). requirement established by the Nasdaq panel in order to maintain the Company's listing on the Nasdaq SmallCap Market. The Company's conditional listing expires on September 30, 1999. Hawaiian Natural Water Company bottles, markets, and distributes bottled water in the U.S., the Middle East, and Asia for the fastest growing segment of the bottled water industry, the retail premium (2 liters or less) PET market. Hawaiian Natural Water complies with FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. labeling requirements for 'bottled at the source' and 'natural' water. 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. in this release are made pursuant to the "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. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, possible changes in cost of materials, expense items, capital expenditures, capital structure, and other financial items; introduction of new products and possible acquisitions of assets or businesses; possible actions by customers, suppliers, competitors, regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities ; and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. |
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