SPESCOM SOFTWARE COMPLETES $2.2 MILLION PRIVATE PLACEMENT
November 11 2004 - 7:00AM
PR Newswire (US)
SPESCOM SOFTWARE COMPLETES $2.2 MILLION PRIVATE PLACEMENT Funding
will Accelerate Expansion of Sales and Marketing Activities to
Capitalize on New Market Opportunities SAN DIEGO, Nov. 11
/PRNewswire-FirstCall/ -- Spescom Software Inc. (OTC:SPCO)
(BULLETIN BOARD: SPCO) , a leading developer of enterprise content
and configuration management solutions, announced today that it has
completed a private placement with Mercator Advisory Group, LLC,
and Monarch Pointe Fund, Ltd., to raise a total of $2.2 million in
new financing. The announcement was made by Spescom Chief Executive
Officer Carl Mostert. Under the terms of the financing, the Company
issued 2,200 shares of convertible preferred stock, and warrants,
which expire November 5, 2007, to purchase 2.75 million shares of
common stock at $0.44 per share. The preferred stock is convertible
into shares of common stock at a conversion price that can vary
within a range determined by the trailing revenues of the last four
fiscal quarters reported by the Company. The range is from 5.5
million shares, if the trailing four quarters revenues are greater
than $10 million, up to 7,333,334 shares of common stock if the
trailing four quarters revenues are equal to or less than $9
million. The aggregate purchase price of the preferred stock and
warrants issued in the financing is $2.2 million. "We are very
excited about our involvement with Mercator and its affiliates as
it clearly validates our strategic initiatives. We believe that the
additional funding will enable Spescom to significantly accelerate
its marketing and sales efforts," said Mr. Mostert. "With this
expansion and the strong differentiators in the Company's software
product, we believe the Company is now better positioned to
capitalize on its significant pipeline of sales opportunities." Of
the total $2.2 million, $1.65 million was paid by the investors on
November 5, 2004. An additional $550,000 is payable to the Company
within two days after the Company files a registration statement
with the Securities and Exchange Commission (SEC) for the resale of
the common stock into which the preferred stock is convertible, as
well as for the 2.75 million shares issuable under the warrants.
The Company has agreed to use commercially reasonable efforts to
file the registration statement by December 5, 2004. Cappello
Capital Corp. acted as financial advisor to the Company in
connection with this transaction and received a fee of $176,000.
Cappello will also receive a warrant to purchase a number of common
shares equal to 10% of the shares into which the securities issued
in the transaction are convertible, at a price equal to the price
paid by the purchasers. About Spescom Software Inc. Spescom
Software (OTC:SPCO) (BULLETIN BOARD: SPCO) delivers information
management solutions that capture, manage and control all
enterprise content in large-scale computing and networked systems
in a broad range of businesses and industries. Spescom's solutions
provide uniquely clear information to users, delivered in context
to the various assets, products and processes that the information
relates to, resulting in improved customer satisfaction, higher
productivity and increased levels of safety and data security.
Spescom achieves this through its tightly integrated suite of
document, configuration and records management technologies,
combined with a powerful workflow capability. Our solutions enable
the identification of all critical enterprise information, the
effective management of information change and other business
processes, as well as the maintenance of records to ensure
regulatory compliance. Key customers include Constellation Energy,
Continental Express, AmerenUE, the Cities of Las Vegas, Nev., and
Dayton, Oh. Lloyds Register, United Space Alliance, Entergy,
Northeast Utilities, London Underground, Network Rail and many
others. For more information, visit
http://www.spescomsoftware.com/. Cautionary Language Except for
historical information contained herein, the matters set forth in
this release include forward-looking statements that are dependent
on certain risks and uncertainties, including such factors, among
others, as market acceptance, market demand, pricing, changing
regulatory environment, the effect of the company's accounting
policies, potential seasonality and other risk factors detailed in
the company's SEC filings. Company Contacts: Carl Mostert, CEO
Spescom Software Inc. (858) 625-3000 John Low, CFO Spescom Software
Inc. (858) 625-3000 DATASOURCE: Spescom Software Inc. CONTACT: Carl
Mostert, CEO, +1-858-625-3000, or John Low, CFO, +1-858-625-3000,
both of Spescom Software Inc. Web site:
http://www.spescomsoftware.com/
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