Medcross announces closing of $15.1 million private placement.ST. PETERSBURG, Fla.--(BUSINESS WIRE)--Sept. 11, 1996-- Funds Will Be Used for Product Rollout and Marketing of Fax4Less by I-Link, a Subsidiary of Medcross Inc. Medcross, 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 : ILNK) announced today that it has closed a Private Placement of 240,000 shares of Class C Convertible Cumulative Redeemable 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. , $10 par value, at $60 per share. The Private Placement was managed by Commonwealth Associates, a New York-based investment banking firm specializing in investment services for small-capitalization and middle-market, emerging growth companies in industries such as technology, healthcare services, automotive, and special situations. In addition, the Company issued $717,000 of convertible promissory notes which are convertible into Class C Preferred Stock at $60 per share, upon certain conditions being met. The Company received net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the offering of approximately $12.8 million after payment of commissions and other expenses related to the offering. The Company will use the proceeds to further the operations of its subsidiary, I-Link Worldwide Inc. I-Link will use the funds for product rollout and marketing of its Fax4Less service. Fax4Less takes advantage of new technology to offer subscribers significant savings on long-distance fax costs. In accordance with the terms of the Stock Purchase Agreement between ILink, Ltd. and the Company and as a result of the closing of the Private Placement, 1.6 million shares of the Company's restricted Common Stock held in escrow for the benefit of the former shareholders of ILink, Ltd. will be immediately released from escrow. Upon such release, the Company will record additional intangible assets of $9.8 million, which will be expensed over the 18-month period remaining in the life of the intangible assets. In addition the Company will record a $9.8 million increase in shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. . "This investment is an important milestone for I-Link. It allows us to complete our testing and product rollout of the Fax4Less service throughout the U.S.," said I-Link President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , John W. Edwards. "Our vision is to provide tomorrow's communications capabilities today by reducing costs, simplifying procedural and ownership issues, and adding communication intelligence." Fax4Less utilizes new networking technology offering potential cost savings o over 50 percent on long-distance fax costs. This service requires no additional fax equipment, software or procedures and integrates the single-unit fax machine with PC fax and electronic mail. Currently, Fax4Less is being tested by several companies with offices in major fax-traffic cities, such as 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 , Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , Washington, D.C., Dallas, and Houston. Medcross, Inc., through its subsidiary I-Link Worldwide Inc., delivers business communications services via the emerging worldwide data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. networks (which include the Internet). In addition, Medcross, Inc. is an owner and operator of medical diagnostic and therapeutic facilities and equipment, including MRI 1. (application) MRI - Magnetic Resonance Imaging. 2. MRI - Measurement Requirements and Interface. , kidney lithotripsy Lithotripsy Definition Lithotripsy is the use of high-energy shock waves to fragment and disintegrate kidney stones. The shock wave, created by using a high-voltage spark or an electromagnetic impulse, is focused on the stone. , and ultrasound. Medcross is a joint venture partner with China National Equipment and Supplies Import and Export Shenyang Corporation, which export medical equipment to China. CONTACT: Tom Urquhart I-Link Worldwide Inc. 801-576-9258 tomu@i-link.net or Krystyna Stachowiak Coltrin & Associates 212-221-1616 Krystyna_Stachowiak@Coltrin.com |
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