LocatePLUS Completes $8 Million Financing
14 Julio 2005 - 3:33PM
PR Newswire (US)
LocatePLUS Completes $8 Million Financing BEVERLY, Mass., July 14
/PRNewswire-FirstCall/ -- LocatePLUS Holdings Corp.
(OTC:LPLHAOTC:LPLHBOTC:LPLHW) (BULLETIN BOARD: LPLHA, LPLHB, LPLHW)
, an industry-leading provider of business-to-business and
business-to-government investigative solutions, announced that it
has closed on an aggregate $8 million financing. The financing
consists of 3% senior convertible notes which are convertible into
the Company's common stock at a conversion price of $0.10 per share
and warrants to acquire an aggregate of 32,000,000 shares of common
stock at an exercise price of $0.15 per share. The investment was
led by the Special Situations Funds, which invested a total of
$5,000,000 and included $1,000,000 from Greenway Capital. Laidlaw
& Company (UK) Ltd., a New York-based investment and merchant
banking company, acted as placement agent for the transaction.
Proceeds of the investment will be used to retire outstanding debt
owed to Laurus Master Fund, Ltd. and for working capital purposes.
In connection with the financing, the Company has agreed to pursue
a recapitalization of its capital stock by combining shares of the
Company's Class A Voting Common Stock and Class B Nonvoting Common
Stock into a single class of voting common stock and by seeking to
effect a 1-for-50 reverse stock split. Commenting on today's
announcement, LocatePLUS CEO Jon Latorella stated, "We are taking
these actions at this time to simplify our capital structure so
that we can make the Company more attractive to potential
investors. We hope that the recapitalization will allow us to
qualify to include our shares in a national trading market, thereby
increasing the liquidity of our shares and simplifying future
capital raising activities." Latorella concluded, "We believe the
combination of our recent financing, substantial debt reduction,
double-digit annual revenue growth, technological advancements and
strong infrastructure, along with a proposed simplified capital
structure, position LocatePLUS to emerge as a new and powerful
player in the identity validation space." About LocatePLUS
LocatePLUS, and its subsidiaries, are industry-leading providers of
public information and investigative solutions that are used in
homeland security, anti-terrorism and crime fighting initiatives.
The Company's proprietary, Internet-accessible database is marketed
to business-to-business and business- to-government sectors
worldwide. LocatePLUS' online customer base numbers approximately
20,000 members, including over 2,000 law enforcement agencies and
many major police departments across the country. Clients include
leading U.S. agencies, including the FBI (Federal Bureau of
Investigation), ATF (Bureau of Alcohol, Tobacco, Firearms and
Explosives) and DEA (Drug Enforcement Administration). Channel
partners include Loislaw, Earthlink, Imaging Automation, AssureTec,
Metro Risk Management LLC, and the nation's leading recruitment
site. For more information, visit the Company's Website at
http://www.locateplus.com/. For investor information, visit
http://www.otcfn.com/lplha. Safe Harbor Statement from LocatePLUS:
Statements in this press release concerning the Company's business
outlook or future economic performance, anticipated profitability,
revenues, expenses or other financial items, and network or service
offering growth, together with other statements that are not
historical facts, are "forward-looking statements" as that term is
defined under the Federal Securities Laws. Any forward-looking
statements are estimates, reflecting the best judgment of the party
making such statements based upon currently available information
and involve a number of risks and uncertainties, including the
timing of any expansion of the Company's database, and other
factors which could cause actual results to differ materially from
those stated in such statements. Risks, uncertainties and factors
which could affect the accuracy of such forward-looking statements
are identified in the public filings made by the Company with the
Securities and Exchange Commission, and forward-looking statements
contained in this press release or in other public statements of
the Company should be considered in light of those factors. For
more information, contact: At LocatePLUS: Investor Relations: James
Fields Rick McCaffrey LocatePLUS Holdings Corp. OTC Financial
Network 978-921-2727 x124 781-444-6100 x625 DATASOURCE: LocatePLUS
Holdings Corp. CONTACT: James Fields of LocatePLUS Holdings Corp.,
+1-978-921-2727 x124, ; or Investor Relations, Rick McCaffrey of
OTC Financial Network, +1-781-444-6100 x625, Web site:
http://www.locateplus.com/ http://www.otcfn.com/lplha
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