LOS ANGELES, Feb. 14 /PRNewswire/ -- Vertical Computer Systems, Inc. (OTC Bulletin Board: VCSY) announced today that the Company's common stock is now being quoted on a post-split basis. Under current NASD rules, the stock symbol will become VCSYD for the next 30 days to reflect the occurrence of the forward split. On January 28, 2000, the Company announced its board of directors had approved a twenty-for-one forward stock split of the Company's common stock. The record day for the split was February 7, 2000, with the date of distribution set at February 11, 2000. The Company has advised that shareholders do not need to take action to receive the additional shares. Existing certificates should not be destroyed nor returned to the Company, and will continue to represent the number of shares indicated. New certificates will be issued for the balance of shares due. The twenty-for-one stock split will not change the shareholders' existing proportionate ownership.
Richard Wade, CEO and President, commented, "As a growing Internet provider, we feel that it is important for us to broaden the marketability and liquidity of our stock to all our shareholders."
Additionally, on Friday, February 11, 2000, Vertical Computer Systems announced that it had received a commitment letter from Charlotte, North Carolina-based Avenel Financial Group (Avenel) to provide them with a $2,500,000 to $10,000,000 equity funding through the sale of its Series "A" Preferred Stock. According to the terms of the commitment letter, the Company will make available 50,000 shares of its Series "A" Preferred Stock at a price of $200 per share with each preferred share convertible into 25 shares of the Company's restricted common stock. In addition, for every $10 invested into the Company by Avenel, Avenel will receive a stock purchase warrant to purchase one share of VCSY common stock at a price of $20 per share. In accordance with the commitment letter, Avenel has agreed that the preferred shares will not have any registration rights, and that they not be converted into common stock until the expiration of one year. With the Company's common stock now being quoted on a post-split basis, the preferred shares conversion price and warrant exercise price will also be split accordingly
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.