New Visual Entertainment, Inc. Receives Financing Commitment For Up To $23 Million From Lilly Beter Capital Group, Ltd.Business Editors SAN DIEGO--(BUSINESS WIRE)--Sept. 26, 2000 Funding To Accelerate Development and Commercialization Of Company's New "Last Mile" Technology New Visual Entertainment, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :NVEI), a pioneer in the development of proprietary transmission technology focused on delivering the ultimate "last mile" solution, announced today that it has received a financing commitment from Lilly Beter Capital Group, Ltd. (LBCG) that could result in up to $23 million in equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. for the Company. The terms and conditions of the straight equity private placement provide for LBCG to purchase $5 million of the Company's common stock in several tranches at a purchase price equal to 87% of the average market price of the common stock over the five days preceding the closing of each tranche. In addition, LBCG will receive a warrant giving it the right to purchase up to an additional 3 million shares of the Company's common stock at an exercise price of $6.00 per share. If the warrant were fully exercised, the Company would receive $18 million in additional financing. Proceeds from the funding will be used to accelerate development and commercialization of the Company's proprietary transmission technology, currently scheduled for third party evaluation in October. The closing of the transaction is expected to occur in October and is subject to mutually acceptable documentation and approval of each company's board of directors. In other news, New Visual reported that it has formally terminated its previously announced merger agreement with privately-held Intelecon Services, Inc., a Dallas-based provider of business communications technology Noun 1. communications technology - the activity of designing and constructing and maintaining communication systems engineering, technology - the practical application of science to commerce or industry and value-added services A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. , in order to focus its resources on commercialization of its "last mile" technology. Ray Willenberg, Jr., Chief Executive Officer of New Visual, stated, "This straight equity funding Equity funding An investment consisting of a life insurance policy and a mutual fund. The insurance policy is paid by the collateral value of fund shares, giving the investor the advantages of insurance protection with the growth potential of a mutual fund. from Lily Beter represents a tremendous vote of confidence in our development activities, which are beginning to gain considerable momentum. The recent discovery of new innovations, which our engineers believe could greatly enhance the marketability of our technology, could create additional significant opportunities for the Company upon its commercialization. We look forward to sharing details regarding these development efforts and the results of the third party evaluation in the very near future. With respect to our decision to terminate the merger with Intelecon, management determined that we must remain singularly focused on our development efforts. Any dilution of this focus is simply not prudent, nor is it in the best interests of our valued shareholders. Nonetheless, we wish nothing but continued success to Intelecon." Rick Kosloske, President of Lilly Beter Capital Group, Ltd., added, "Lilly Beter Capital Group typically provides debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay on hard assets. Because of the Company's transmission technology and our confidence in New Visual's 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. , Ray Willenberg, and the team he has assembled, we are pleased to be making this equity investment. We are committed to the continued development of the Company's `last mile' technology." About New Visual Entertainment, Inc. New Visual is pioneering the development of a proprietary broadband transmission technology with the mission to utilize existing copper telecommunications infrastructure to deliver high data content to the home or office at VDSL See DSL. VDSL - Very high bit-rate Digital Subscriber Line (52Mbps) data transfer rates. Through its New Wheel Technology, Inc. subsidiary, New Visual is developing this technology, which would allow the bundling of voice, video and data over existing copper telephone wires, eliminating the need for fiber optic cable Noun 1. fiber optic cable - a cable made of optical fibers that can transmit large amounts of information at the speed of light fibre optic cable transmission line, cable, line - a conductor for transmitting electrical or optical signals or electric power to the home or office. Its initial development efforts are focusing on "Very High rate Digital Subscriber Line See DSL. (communications, protocol) Digital Subscriber Line - (DSL, or Digital Subscriber Loop, xDSL - see below) A family of digital telecommunications protocols designed to allow high speed data communication over the existing copper telephone lines between end-users and " (VDSL), and have demonstrated results exceeding industry standards. New Visual's common stock is traded on the Over-The-Counter Bulletin Board under the symbol NVEI. With the exception of historical information contained in this release, this release includes 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. made under 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. These statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, including but not limited to the following: product development difficulties; market demand and acceptance of products; the impact of changing economic conditions; business conditions in the internet, computer, and 3D film and video industries; reliance on third parties including potential suppliers, licensors and licensees; the impact of competitors and their products; risks concerning future technology; and other factors detailed in this release and in the Company's Securities and Exchange Commission filings. |
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