ObjectSoft Announces $7.1 Million Equity Facility From
Institutional Investors
(Business Wire; 05/18/98)
HACKENSACK, N.J.--(BUSINESS WIRE)--May 18, 1998--ObjectSoft Corporation
(NASDAQ:OSFT) announced today that it entered into a Private Equity Agreement
with several institutional investors arranged by Settendown Capital
International, Ltd. which provides for a commitment for up to $7.1 million in
financing.
"This financing strengthens ObjectSoft financially, and is expected to
provide us with the necessary resources to execute our business plan," said
David E. Y. Sarna, Chairman and co-CEO of ObjectSoft.
ObjectSoft, which operates community-oriented kiosks in public places in
New York City and is beginning a similar program in the city of San Francisco
later this month., plans to use the funding to deploy more kiosks in the New
York and San Francisco markets. Additionally, the funding will allow the
company to negotiate arrangements for kiosks, which generate revenue in the
form of advertising, in other cities which it plans to enter in the next 12
months.
Recently, Microsoft (NASDAQ:MSFT), Con Edison (NYSE:ED), and Isabella
Geriatric Center committed to advertise on the company's SmartSign kiosks in
New York.
Under the agreement ObjectSoft sold 444,444 shares of Common Stock together
with warrants to purchase 18,000 shares of stock for a total consideration of
$900,000. The Company, subject to the satisfaction of certain conditions, has
the option of accepting additional investments totaling $1,200,000 in preferred
securities and may, from time to time, "put" to the investors Common Stock of
the Company, potentially producing proceeds of up to $5,000,000.
About ObjectSoft
Founded in 1990, ObjectSoft is a leader in providing information- and
Internet-based services through public access terminals and has pioneered
secure credit card processing of electronic commerce.
ObjectSoft is a publicly held company listed on NASDAQ SmallCap. For more
information on ObjectSoft, visit their website at
http://www.objectsoftcorp.com.Additional details on the financing are provided
in the Company's Quarterly report on Form 10-QSB which was filed on May 15,
1998 with the Securities and Exchange Commission (http://www.sec.gov).
This press release contains certain forward-looking statements concerning
ObjectSoft which are subject to a number of known and unknown risks that could
cause actual results, performance and achievements to differ materially from
those described or implied in the forward-looking statements. Among such risks
are those discussed in the Company's Registration Statement on Form SB-2 and
its Annual and Quarterly Reports on Forms 10-KSB and 10-QSB, respectively, and
include, but are not limited to, limited operating history, recent
establishment of new business divisions, dependence on new and untested
product, risks related to technological factors and potential manufacturing
difficulties.
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