|To: Charles Steneck who wrote ()||7/1/1996 12:39:00 PM|
|From: Gary G, Weathersbee|
LSGT @ 1.31 on news|
( BW)(LASERGATE-SYSTEMS)(LSGT) Lasergate raises $5 million cash
CLEARWATER, Fla.--(BUSINESS WIRE)--July 1, 1996--Lasergate
Systems Inc. (Nasdaq:LSGT) announced Monday that it has successfully
raised approximately $5,175,000 (after commissions and expenses)
through a private placement of its Series F Convertible Preferred
Of the proceeds, $1.3 million was used to redeem at a discount
all Series A Convertible Preferred Stock from a private investor and
to repay debt held by that same investor. The balance of the
proceeds will be used to aggressively expand global sales and
marketing efforts. The Series F Preferred Stock, which is subject to
certain restrictions, will generally be convertible at a conversion
price equal to 75% of the trading price of the Common Stock at the
time of conversion.
With critical debt issues erased, Lasergate will focus on
addressing the backlog of business demand for its technology.
Moreover, by funding the expansion of its sales and technical staffs,
the company intends to actively pursue sales opportunities worldwide.
The company anticipates that the ability to increase its volume of
business will facilitate its efforts to achieve profitability.
As part of the Series A Preferred Stock Redemption, three board
members originally appointed by the private investor who held that
stock, Stewart L. Krug, Timothy E. Mahoney and Lawrence W.
Umstadter, submitted their resignations. Prior to these
resignations, Lasergate's board of directors formally expressed its
recognition and appreciation of Jacqueline Soechtig, company
chairperson and chief executive officer, for "having successfully
completed the financing and thereby providing Lasergate the
opportunity to take advantage of a superior product mix while
continuing to look at future opportunities."
Given the company's strengthened financial posture and its
commitment to pursue global business opportunities, the company plans
to replace the former directors in the near future with experts in
international business affairs and advanced technology.
Next week, the company plans to file an amended Annual Report for
the year ended Dec. 31, 1995 with the Securities and Exchange
Commission reflecting the determination by the company's auditors,
Grant Thornton, to remove the "going concern" qualification from
their audit opinion due to the capital infusion.
Soechtig stated: "With this financial restructuring, Lasergate
is now in the position to control its own destiny. We are clearly on
target to continue achieving the fundamental growth objectives
management has identified while building on what we are confident is
a solid foundation. We have successfully leapt the hurdles that
threatened Lasergate's viability and can now focus on a very bright
and exciting future."
Lasergate Systems Inc. develops, designs, markets, installs and
services state-of-the-art software systems throughout the world for
admission control and revenue accounting at general admission and
reserve seating facilities including amusement parks, theme parks,
museums, ski resorts, sports arenas and multi-purpose arenas.
Lasergate clients include Carnegie Hall, The Boston Red Sox, The Sun
Valley, Idaho Ski Resort and The Florida Aquarium.
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