LOS ANGELES, Feb. 17 /PRNewswire/ -- Vertical Computer Systems, Inc. (OTC Bulletin Board: VCSY - news) announced today that it has received an initial investment of $3,500,000 in equity funding from Charlotte, North Carolina-based Avenel Financial Group (Avenel) through the sale of its Series ``A''Preferred Stock as part of Avenel's $10,000,000 funding commitment.On Friday, February 11, 2000, Vertical Computer Systems announced that it had received a commitment letter from 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, adjusted on a post-split basis, 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 500 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 $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.
Richard Wade, president, stated, ``With Avenel Financial Group's initial investment of $3,500,000 of a maximum of $10,000,000, that brings our current cash position alone to over $4,000,000. With our current assets, we look forward to moving towards applying for a listing on Nasdaq.
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. (ZMRT), (http://www.zebramart.com), an internet premier luxury club.
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.