LOS ANGELES, Mar 1, 2000 (BUSINESS WIRE) -- Vertical Computer Systems Inc. (OTC:VCSY) announced today that Charlotte, North Carolina based Avenel Financial Group (Avenel) will exercise stock purchase warrant for $1,000,000 shares of restricted Vertical Computer Systems (Vertical) stock at $1.00 per share for a total investment of $11,000,000 into Vertical.
As previously reported Vertical Computer Systems announced on Friday, February 11, 2000, that it had received a commitment letter from Avenel to provide Vertical with a $2,500,000 to $10,000,000 equity funding through the sale of its Series "A" Preferred Stock. On February 25, 2000, Vertical announced it was to receive a second payment of $6,500,000 to complete the $10,000,000 equity funding. According to the terms of the February 11, 2000, commitment letter, adjusted on a post-split basis, the Company made available 50,000 shares of its Series "A" Preferred Stock at a price of $200 per share with each preferred share convertible into 500 shares of the Company's restricted common stock. Additionally, for every $10 invested into Vertical by Avenel, Avenel was entitled to receive a stock purchase warrant to purchase one restricted share of Vertical common stock at a price of $1.00 per share. According to the commitment letter, Avenel has agreed that the preferred shares will not have any registration rights and that they may not be converted into common stock until the expiration of one year. In addition, the common shares issued pursuant to the warrant exercise are restricted for one year and carry no registration rights.
About Avenel Financial Group Avenel Financial Group is a private venture capital group whose recent investments include Summus, the majority owner of the publicly held High Speed Net Solutions, Inc. and zebramart.com, Inc., (OTC:ZMRT).
Vertical Computer Systems, Inc. is a multi-lingual portal provider, and e-commerce solutions company, based in the United States. The Company provides a full range of Internet services that include building e-commerce solutions nationally and internationally, distributing content via its multi- lingual portal network (http://www.TheChinaBridge.com); and Internet services (http://www.thepostmaster.net). Through its majority-owned subsidiary, Externet World, Inc., the Company provides online shopping services (http://www.ShoppingInternet.com) and proprietary online gaming software (http://www.ccpsoftware.com). Vertical Computer Systems is committed to building e-commerce communities on the Internet in the Americas, Europe, Asia and Pacific Rim.
Forward-looking statements in this release are made pursuant to the Safe Harbor provision of the Private Securities Litigation Act of 1995. These forward-looking statements are subject to certain risks and uncertainties and actual results could differ from those discussed. This material is information only, and is not an offer or solicitation.
SOURCE: Vertical Computer Systems, Inc.