Sonic Solutions Secures $12 Million Equity-based Line of Credit.
Sonic Solutions (NASDAQ:SNIC) announced today that it has secured a new $12 million equity-based line of credit.
Under this arrangement Sonic has the right to draw up to a total of $12 million in cash in exchange for Sonic common stock. Pricing of the common stock issued will be based on the market price of Sonic's common stock at the time of a draw. The timing and amount of individual draws are at the sole discretion of Sonic, subject to a number of conditions.
The line will remain in place for a period of approximately 24 months.
In conjunction with this financing arrangement, Sonic has filed a new Form S-1 Registration Statement with the Securities and Exchange Commission (SEC), and withdrawn a Form S-3 Registration Statement currently on file. Draws under the equity line may be made at the Company's discretion once the S-1 is declared effective, subject to a number of conditions. More detail regarding the terms of this financing is available in the documents Sonic has filed with the SEC.
"We are very pleased to have obtained this kind of equity financing," said Bob Doris, Sonic's President. "It provides us with flexibility to raise additional capital when and if we need it as we develop new products, especially in the DVD area."
About Sonic Solutions (NASDAQ: SNIC)
Based in Marin County, California, Sonic Solutions designs and manufactures DVD publishing systems used by video, audio and multimedia professionals around the world to prepare music, video, film, graphics and entertainment software. Sonic DVD Creator is the leading system for producing content for the DVD format, and has been used to create thousands of DVD titles worldwide, for applications ranging from feature film releases to corporate and industrial titles.
Sonic DVDit! is the easiest way to publish on DVD and for the first time makes DVD production available to the consumer market. Sonic also offers SonicStudio HD, the leading digital audio workstation used by audio professionals to prepare recorded sound for release on DVD and CD, as well as for film and video soundtracks and broadcast.
Sonic is a leader in advancing DVD-Video and DVD-Audio technology and is a full voting-member of the DVD Forum, the standards-setting body for the DVD format. Sonic Solutions can be contacted on the web at www.sonic.com.
Forward Looking Statements
The above paragraphs of this press release may contain forward looking statements that are based upon current expectations. Actual results could differ materially from those projected in the forward looking statements as a result of various risks and uncertainties including, among others, the timely introduction and acceptance of new products, costs associated with new product introductions, the transition of products to new hardware configurations and platforms and other factors, including those discussed in the Company's annual and quarterly reports on file with the Securities and Exchange Commission. This press release should be read in conjunction with the Company' s most recent annual report on Form 10-K and most recent quarterly reports on Form 10-Q on file with the Securities and Exchange Commission, which contain a more detailed discussion of the Company's business including risks and uncertainties that may affect future results.
Sonic, Sonic Solutions, the Sonic logo, AuthorScript, DVD Creator, DVD Production Alliance and DVDit! are trademarks of Sonic Solutions. All other company or product names are trademarks of their respective owners. Specifications, pricing and delivery schedules are subject to change without notice.
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|Date:||May 27, 1999|
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