Not spammed, the real dealCOPI (0.0350) Compliance Systems Corporation Completes $2.5M Financing
Wednesday, January 02 2008 8:55 AM, EST Business Wire "US Press Releases "
GLEN COVE, N.Y.--(BUSINESS WIRE)--
Compliance Systems Corporation (OTCBB: COPI), a telecom service company focused on providing compliance technologies, methodologies, has completed a $2.5 million financing. In addition, debt holders exchanged $3.1 million in of Company debt into equity, resulting in a total increase in stockholders' equity of 5.6 million.
The Company raised $2.5 million by issuing Serial Preferred A shares at $1.00 each, and debt holders exchanged approximately $3.1 million of Company debt into shares of the Company's Serial Preferred B and C Stock at $1.00 per share. Each preferred share is convertible into 100 restricted shares of the Company's common stock.
This transaction enabled Compliance Systems to use approximately $1.1 million dollars to buy out from Cornell Capital-affiliated entities convertible debentures that has been previously detailed in regulatory financings. The remaining funds will be used for ongoing and future business development. Further agreement details can be found in the Form 8-K Compliance Systems filed with the Securities and Exchange Commission on December 31, 2007 .
"This transaction marks a significant step for Compliance Systems as it evidences management's commitment to improving the Company's capital structure. While we acknowledge Cornell provided us initial funding assistance, this restructuring should greatly improve our balance sheet, while providing working capital to allow for the continued advancement of business strategy over the next few quarters," stated Dean Garfinkel, President and CEO of Compliance Systems Corporation, Inc.
About Compliance Systems Corporation
Compliance Systems Corporation (https://www.callcompliance.com), located in Glen Cove, NY, is a developer of technology-based compliance solutions for the teleservices industry. The company's primary proprietary product, TeleBlock Call Blocking System, automatically screens and blocks outbound calls against federal, state, and in-house do-not-call lists. Compliance Systems also offers a Regulatory Guide, an up-to-date, online compilation of state and federal telemarketing laws, as well as ongoing compliance auditing services.
For further information on TeleBlock(R), visit www.teleblock.com; for more information on the Regulatory Guide, visit www.cci.regulatoryguide.com or call 888-674-6774. Call Compliance Inc. is a wholly owned subsidiary of Compliance Systems Corporation (COPI.BB).
Forward-Looking Statements
The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date thereof.
Source: Compliance Systems Corporation