Printer Friendly

VIDEOCART OBTAINS $55 MILLION IN FUNDING

 VIDEOCART OBTAINS $55 MILLION IN FUNDING
 CHICAGO, Sept. 17 /PRNewswire/ -- VideOcart Inc. (NASDAQ: VCRT)


announced $55 million of funding today in a combination of $45 million in long term debt and $10 million in new equity.
 The company reached an agreement with IBM on a favorable long-term debt facility with a maximum of $45 million. Funds will be taken down by the company as required for payments relating to manufacturing being done for the company by IBM, and repaid over four years.
 Some of these funds will be used to shift a current account payable for display units and related equipment already installed to long-term debt; the balance represents sufficient IBM-manufactured equipment for 350-400 total stores, at which point the parties agreed to terminate production of the existing ten button unit and convert to the Company's new touchscreen unit. Concurrently, the parties reached agreement on an initial production run of the new unit.
 In connection with the transaction, the previous IBM warrant to purchase 175,000 shares of common stock at $14.50 per share was canceled and replaced by a warrant through 1996 to purchase 540,000 shares of common stock at $6.00 per share.
 In the equity transaction, the company's Chairman, John Malec, replaced an unused equipment leasing line extended to the company last spring with an agreement to purchase $10 million of convertible preferred stock. These proceeds will be used for operating capital.
 VideOcart is a micro-marketing media company, in its development stage, which installs and maintains a communication network consisting of programmable and targetable digital communications to video displays affixed to grocery shopping carts. This communications network, now installed in nearly 200 supermarkets across the country, allows consumer product goods manufacturers to reach consumers at the exact aisle location of the brand being advertised or promoted with a flexible video message.
 -0- 9/17/92
 /CONTACT: Randy S. Mueller, manager of investor relations of VideOcart 312-987-5000, or Cathy Riemer of International Business Machines, 312-245-7995/
 (VCRT) CO: VideOcart Inc. ST: Illinois IN: SU: FNC


PS -- NY019 -- 0477 09/17/92 09:31 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 17, 1992
Words:347
Previous Article:WORLDWIDE FOREST PRODUCTS' SMC SUBSIDIARY WINS $3.5 MILLION CONTRACT
Next Article:FRANKLIN QUEST ANNOUNCES NEW POCKET DAY PLANNER AND TIME MANAGEMENT SOFTWARE FOR MACINTOSH
Topics:


Related Articles
VIDEOCART COMPLETES PATHMARK STORES AND BEGINS BASHAS' EXPANSION
VIDEOCART ANNOUNCES AGREEMENT WITH USA TODAY
VIDEOCART ANNOUNCES THIRD QUARTER RESULTS
VIDEOCART STORES WILL MAKE POSITIVE CONTRIBUTION IN FOURTH QUARTER
VIDEOCART ANNOUNCES $15 MILLION PRIVATE PLACEMENT CLOSING AND SYMBOL CHANGE
VIDEOCART TO REALIZE $20 MILLION GAIN UPON COMPLETION OF CLOSE-OUT AGREEMENT WITH IBM
IBM AND VIDEOCART SIGN CLOSE-OUT AGREEMENT
VIDEOCART TO REALIZE $20 MILLION GAIN FROM AGREEMENT ON IBM DEBT RESTRUCTURING
VIDEOCART TO WITHDRAW FROM UNPROFITABLE STORES
VIDEOCART CLAIMS AGAINST INFORMATION RESOURCES, INC.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters