Brookside Technology Announces Successful Recapitalization
22 Julio 2008 - 6:30AM
Business Wire
Brookside Technology Holdings Corp. (OTCBB: BKSD), a provider of
converged VoIP, data, video and wireless business communications
systems, today announced that Vicis Capital Master Fund (�Vicis�),
has purchased and assumed from Hilco Financial, LLC ("Hilco"),
Brookside�s senior secured lender, and Dynamic Decisions Growth
Premium Fund ("Dynamic"), Brookside�s subordinated lender, all
credit agreements, loans and promissory notes under which Hilco and
Dynamic had loaned money to the Company. Furthermore, Vicis has
provided to Brookside an additional equity infusion of $2.5 million
through the purchase of 2,500,000 shares of series A convertible
preferred stock, which are convertible into common stock at $.03
per share. Proceeds of the private placement will be used to
support future acquisitions and for general working capital. With
this latest $2.5 million equity investment, in addition to the
prior $3 million in equity funding provided to acquire U.S. Voice
& Data in September 2007, as well as the assignment of the
various debt facilities to Vicis, Vicis has increased its combined
debt and equity position to over $13 million. Vicis also owns a
warrant position, that if exercised, could provide an additional
$10 million in cash to the company. Mr. Michael Nole, chairman and
CEO, stated, �We are quite pleased to have completed this
recapitalization during this challenging time for the credit
markets and financial institutions. Over the past six months, our
business has continued to grow by leveraging the products and
services of our respective subsidiary companies, while also
generating strong cash flow. Moreover, this latest financing
provides the company solid footing to accelerate our acquisition
strategy as we target complementary businesses at attractive
valuations that allow us to fully leverage our infrastructure and
capabilities. We believe that Vicis� commitment to Brookside
illustrates its confidence in our business model, management team
and outlook for the business. About Brookside Technology Holdings
Corp Brookside Technology Holdings Corp., through its subsidiary
companies, is a leading provider and global managed services
company specializing in analyzing, designing, selling, and
implementing converged Voice over IP (VoIP), data, video, and
wireless (Wi-Fi) business communications systems. Brookside offers
a unique portfolio of products and services that solve today�s
telecommunications challenges by combining technology, business,
and financial solutions. Brookside's customers include both
commercial and state/government organizations of all types and
sizes throughout the United States. The Company seeks to grow
organically and through the acquisition of complementary businesses
looking to capitalize on the highly specialized growth market of
providing turnkey converged voice and data solutions. With a proven
track record of acquiring profitable businesses at attractive
valuations, Brookside plans to leverage its expanding capabilities
and combined customer bases of its portfolio companies. Additional
information on the company can be found at www.brooksideus.com.
About Vicis Capital Master Fund Vicis Capital Master Fund, is a
multi-strategy hedge fund which as of June 1, 2008 has in excess of
$4.5 billion assets under management across a range of strategies.
Forward-Looking Statement: Except for factual statements made
herein, the information contained in this press release consists of
forward-looking statements that involve risks and uncertainties,
including the effect of changing economic conditions, customer
acceptance of products and other risks and uncertainties. As
previously disclosed in its SEC filings, such forward-looking
statements are not guarantees of performance, and the Company's
results could differ materially from those contained in such
statements. These forward-looking statements speak only as of the
date of this release, and the Company undertakes no obligation to
publicly update any forward-looking statements to reflect new
information, events or circumstances after the date of this
release.
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