Odetics Signs Agreement for Iteris Equity Financing.Business Editors & High-Tech Writers ANAHEIM, Calif.--(BUSINESS WIRE)--July 19, 2001 Odetics Inc. (Nasdaq:ODETA)(Nasdaq:ODETB) today announced that its subsidiary, Iteris Inc., has signed an agreement providing for the issuance of Iteris 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. and Iteris common stock to two institutional investors in exchange for $5.5 million in cash plus the conversion of approximately $4.2 million in debt. The $5.5 million of new investment capital was based on a pre-money valuation Pre-Money Valuation The value of a company before external financing alternatives are added to its balance sheet. Notes: This is the value many investors will use to determine the security and benefits associated with cash injections into companies requiring financing. of approximately $45 million for Iteris. In connection with the financing, Iteris has also received a letter of intent from a lender for an operating line of credit providing for borrowings up to $5 million. Availability of borrowings on the line is based on qualified accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , inventory, and equipment. Jack Johnson Jack Johnson may refer to:
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. , led by an important strategic investor and a major international institutional investor, will enable Iteris to fully fund its current business plan. We are especially pleased to have accomplished this given current market conditions." As part of the transaction, Odetics has agreed to sell approximately $1.4 million of its ownership stake in Iteris to a group of investors that include Iteris and Odetics management. As a result of the Iteris financing and the sale of a portion of its ownership in Iteris, Odetics will receive aggregate proceeds of $4 million, which will be used to retire borrowings on its line of credit. Borrowings on the Odetics line of credit, after the pay down, will be reduced to approximately $3.5 million. Odetics and Iteris anticipate that the closing of this transaction will be completed within the next two weeks. "From our perspective," commented Joel Slutzky, chairman of Odetics, "closing the financing is a major milestone. It validates the value of Iteris, and gives Odetics an infusion of capital." Iteris was represented in the transaction by its sole placement agent and adviser L.H. Friend, Weinress, Frankson & Presson LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . About Iteris Inc. Iteris, a subsidiary of Odetics, is a leading provider of advanced information, software and sensor technologies that improve the efficiency and safety of surface transportation. Iteris has combined information technology, system integration and applied sensors to offer a broad range of telematics Originally coined to mean the convergence of telecommunications and information processing, the term later evolved to refer to automation in automobiles. GPS navigation, integrated hands-free cellphones, wireless communications and automatic driving assistance systems all come under the and transportation solutions. For more information, see the Iteris Web site at http://www.iteris.com. About L.H. Friend, Weinress, Frankson & Presson LLC L.H. Friend, Weinress, Frankson and Presson is an Irvine, Calif.-based, full service institutional investment banking firm, specializing in private placements and mergers and acquisitions for middle market and emerging growth companies. About Odetics Inc. Odetics is engaged in the development of communication and technology companies that may be spun-off to its shareholders. Odetics' companies develop software and hardware-based solutions for the intelligent transportation systems, telecommunications, video security, and television broadcast markets. Odetics headquarters are located in Anaheim with additional operations in Europe and Asia. IMPORTANT NOTICE: This news release contains statements that may be deemed to be forward looking. These forward-looking statements may include statements about revenue growth, profit margins, the effect of cost reduction measures, and other statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the operating results of Odetics or its subsidiaries. Actual results could differ materially from those projected in the forward-looking statements as a result of the failure to satisfy conditions precedent to the Iteris equity financing, the completion of the Iteris operating line of credit and other risk factors such as: short product lives, technological shifts, current technical issues that cannot be resolved on a timely basis, component availability, competition (including new and directly competitive products from others), pricing pressures, incorrect assumptions regarding market demand, the significant uncertainty of market acceptance of new products by both distributors and end-user customers, unanticipated capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. , retention of key personnel, general economic conditions, the inability of the company to execute its strategy including the completion of both private and public equity financings of its subsidiaries, and other factors identified in the Odetics' Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Quarterly Report on Form 10-Q Form 10-Q See 10-Q. . Investors are strongly encouraged to review the risk factors set forth in the Odetics most recent SEC filings. |
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