StarBase Corp. announces financing plan; exchange of warrants for shares to be offered to warrant holders.
In connection with the financing, current warrant holders will be offered the right to exchange their warrants for shares. In addition, the company expects to retain an investment banking firm to provide advice and counsel during the financing and on other strategic issues.
StarBase has received several financing proposals to fund the marketing and sales of the recently announced StarTeam 3.0 product family scheduled for shipment late this summer. The company will announce the details of the financing when the terms are finalized.
In connection with the financing and to simplify its capital structure, the company will offer current warrant holders the right to exchange the warrants for common stock on a ratio of one share for three warrants. If all warrants were converted, approximately 1.6 million additional shares would become outstanding.
Previously, the company announced several strategic relationships with other software companies including Microsoft, Corel, Oracle, Symantec and Intersolv.
The company believes that the consolidation of software companies within the automated software quality market is accelerating. This market is composed of both software configuration management companies, such as StarBase, and test tool companies. StarBase will rely upon its investment banker to provide advice on further expansion of strategic relationships within this market.
StarBase, with headquarters in Irvine, offers a complete family of SCM products designed to fill the needs of application and Web site developers and teams. StarTeam has won several awards including PC Week Analyst's Choice (October 1996), PC Week 1996 IT Excellence Award (April 1996) and PC Week LABS Top Product of 1995 (December 1995).
More information is available by calling 888-STAR700 or by Web site at: http://www.starbase.com .
When used in the preceding discussion, the words "believes, expects, or intend to" and similar conditional expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements.
Such risks and uncertainties include, but are not limited to, conditions in the general economy or the software industry, the timely development and market acceptance of products and technologies, competitive factors, demand for ITE software products, sell-through of products in the sales channels and other risks described in StarBase Corp.'s SEC reports and filings. -0-
Note to Editors: StarBase, StarTeam and Versions are trademarks of StarBase Corp. Other trademarks are the property of their respective companies.
CONTACT: StarBase Corp., Irvine
William R. Stow III, 714/442-4410
The Financial Relations Board Inc., Los Angeles
Rebecca Bergman, 310/442-0599 (general info)
Edward J. Tretter, 310/442-0599 (analysts)