WHATS THISbject:
Stockwatch: Compression & Encryption Tech Inc - News Release
Date:
Fri, 03 Mar 2000 16:43:13 -0800
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IS THIS A THIRD
Compression to sell 750,000 units privately
Compression & Encryption Tech Inc CYH
Shares issued 10,098,273 Mar 3 close $2.10
Fri 3 Mar 2000 News Release
Mr. Randy Pointkoski reports
Compression & Encryption Technologies is in negotiations with potential
investors regarding a non-brokered private placement under available
prospectus exemptions. The corporation has concluded that this strategy it
is in the best interests of its current shareholders. The proposed private
placement calls for issuance of up to 750,000 units at a discounted price
of $1.50 per unit. The unit is to consist of one common share with a hold
period of one year and one non-transferable share purchase warrant. The
warrants holder will be entitled to purchase one common share of the
company for every two warrants at a purchase price of $3 per share for a
period of one year.
The company shall use the proceeds of this private placement as working
capital to continue international market development, continue the product
development to add new feature sets and products to the company's product
offering and to assist the company in the pursuit of new strategic business
opportunities.
The completion of the proposed private placement is subject to regulatory
approval.
The company also intends to issue 5.34 million common shares at a price of
10 cents per share with a one-year hold period. The shares are being issued
to settle fees and operational expenses incurred over the last 12 months
ended Jan. 31, 2000, on CYH's behalf in the amount of $534,000 pursuant to
an existing management contract with OKKO Corporation. This share issuance
is subject to the receipt of regulatory approvals.
The family of CYH data link optimization products are designed to expand
the usable bandwidth of wide area network (WAN) services. These products
deliver up to four times the throughput normally available on existing data
links. Data communications carriers provide these WAN services on a monthly
lease basis. The value of the extra bandwidth obtained from the use of the
hardware is dependent upon the costs of the bandwidth. With demand for
bandwidth globally growing faster than the infrastructure, an opportunity
is created for effective bandwidth optimization technologies.
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