Printer Friendly

ARCHER COMMUNICATIONS ANNOUNCES FINANCING WITH CAPCOM

 ARCHER COMMUNICATIONS ANNOUNCES FINANCING WITH CAPCOM
 CALGARY, Alberta, May 11 /PRNewswire/ -- Archer Communications


Inc. (NASDAQ: QSNDF; Toronto AAZ) announced that it has reached an agreement in principal with Capcom Co., Ltd., of Japan, the investor in the proposed financing previously announced by the company on Feb. 25, 1992. Subject to agreement on final documentation, regulatory and company shareholder approval, the investor will provide the company with a $2,700,000 (U.S.) initial loan and a $4,500,000 (U.S.) term loan convertible into 3 million common shares at a conversion price of $1.50 (U.S.) per share. The company will issue a warrant to purchase up to 2,500,000 common shares at $1.83 (U.S.) per share in connection with the financing. A $675,000 (U.S.) advance on the initial loan was made by the investor last month, and the balance of the initial loan is expected to be funded in May, with approximately $1,700,000 (U.S.) of the proceeds to be used to retire down the company's line of credit from J & C Resources. The company expects the term loan to be funded in two equal advances in July 1992 and during the second quarter of 1993, with the proceeds to be used to further finance the research and development, manufacturing and marketing of the QSound technology. Funding of the loans is contingent, however, ont and applications.
 The initial loan will bear and 8 percent interest rate and will be repaid in equal semi-annual installments, with the last installment due on Oct. 1, 1994. The convertible loan will bear interest at 6 percent for the first three years and 8 percent thereafter, with interest payments commencing in July, 1994. Repayment of term loan principal will commence in July 1997, with quarterly installments of approximately $161,000. The unpaid balance of term loan principal and interest will be due in June 1999.
 Both loans will be secured by a first priority interest in the company's QSound patents and other intellectual property upon the repayment of the J & C Resources line of credit, as well as by a second priority interest in the company's studio/office complex in Calgary, and by a first priority interest in all of the company's other assets.
 -0- 5/11/92
 /CONTACT: David Gallagher of Archer Communications, 403-291-2492/
 (QSNDF AAZ) CO: Archer Communications Inc. ST: IN: ENT SU:


JB-SS -- FL012 -- 8649 05/11/92 12:40 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:May 11, 1992
Words:409
Previous Article:FRONTIER INSURANCE GROUP ANNOUNCES UNAUDITED FIRST QUARTER 1992 RESULTS
Next Article:OFFICE OF CONSUMER ADVOCATE FILES COMPLAINT
Topics:


Related Articles
ARCHER COMMUNICATIONS ANNOUNCES CAPCOM TO PAY MINIMUM PROCEEDS BASED ON NOV. 7, 1991 AGREEMENT
ARCHER COMMUNICATIONS ISSUES PRIVATE PLACEMENT
Work Your Brain With Catan On The N-Gage Platform.
Nokia and Capcom Hook Up for N-Gage Games.
First Ever Handheld Version of Settlers of Catan Arrives on the N-Gage Platform.
Capcom(R) Appoints Chris Kramer as Senior Director of Communications and Community.
Capcom to Bring Games to N-Gage Platform in 2008.
Nokia and Capcom Resurrect Classic Franchise With Resident Evil Degeneration.
Airplay SDK Powers Capcom's "Resident Evil Degeneration" on Multiple Mobile Platforms.
Airplay SDK Powers Capcom's "Resident Evil Degeneration" on Multiple Mobile Platforms.

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