FARO Technologies (NASDAQ:FARO)
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FARO Technologies Announces $40.4 Million Private Placement
LAKE MARY, Fla., Nov. 12 /PRNewswire-FirstCall/ -- FARO Technologies, Inc.
today announced that it, together with the Company's two co- founders, have
entered into an agreement with various institutional investors for a $40.4
million private placement of its common stock. Under the terms of the
agreement, FARO agreed to sell 1,128,000 shares, or approximately 8% of total
shares outstanding, and the two co-founders of the Company, Simon Raab and
Gregory Fraser, agreed to sell 752,000 shares, or approximately 20% of their
holdings, in the aggregate. The shares will be sold for $21.50 per share,
resulting in total proceeds before placement agent fees and other offering
expenses of $24.2 million and $16.2 million to the Company and the co-founders,
respectively. The financing will be completed with a select group of
institutional investors. The Company expects the private placement to be
completed later today.
(Logo: http://www.newscom.com/cgi-bin/prnh/20000522/FLM035LOGO )
"The proceeds from this private placement will enable FARO to continue the
aggressive growth which we have been experiencing in spite of the sputtering
economy," said Simon Raab, President and CEO. "In particular we will have the
means to fund our manufacturing expansion in Europe, our expanded sales presence
in Asia/Pacific, and although we have no specific plans at this time for an
acquisition or other strategic transaction, we will have the ability to react
quickly to any such an opportunity. Regarding the sale of shares by Greg and
me, this amounts to approximately 20% of our stock, and is the only non-option
related stock which we have sold since our IPO in 1997. Our personal interest
in the company, therefore, remains very well-aligned with our fellow
shareholders," Raab concluded.
The common stock sold to the investors was not registered under the Securities
Act of 1933, as amended, and may not be offered or sold in the United States
except pursuant to an effective registration statement or an applicable
exemption from the registration requirements of the Securities Act. Under the
terms of the financing, FARO has agreed to file a registration statement with
the Securities and Exchange Commission covering the offer and sale of the shares
by investors.
About FARO
FARO Technologies, Inc. (NASDAQ:FARO) and its international subsidiaries design,
develop, and market software and portable, computerized measurement devices. The
Company's products allow manufacturers to perform three- dimensional inspections
of parts and assemblies on the shop floor. This helps eliminate manufacturing
errors and thereby increases productivity and profitability for a variety of
industries in FARO's worldwide customer base. Principal products include the
FARO Gage(TM), Platinum and Titanium FaroArms(R), Control Station(R) measurement
system, the Laser Tracker(R) and a CAM2(R) family of advanced CAD-based
measurement and reporting software. FARO Technologies is ISO 9001 certified and
Guide 25 approved. Learn more at http://www.faro.com/.
This press release contains forward-looking statements (within the meaning of
the Private Securities Litigation Reform Act of 1995) that are subject to risks
and uncertainties, such as statements about our plans, objectives, projections,
expectations, assumptions, strategies, or future events. Statements that are not
historical facts or that describe the Company's plans, objectives, projections,
expectations, assumptions, strategies, or goals are forward-looking statements.
In addition, words such as "may," "believes," "anticipates," "expects,"
"intends," "plans," "seeks," "estimates," "will," "should," "could," and similar
expressions or discussions of our strategy or other intentions identify
forward-looking statements. Other written or oral statements, which constitute
forward-looking statements, also may be made by the Company from time to time.
Forward-looking statements are not guarantees of future performance and are
subject to various known and unknown risks, uncertainties, and other factors
that may cause actual results, performances, or achievements to differ
materially from future results, performances, or achievements expressed or
implied by such forward-looking statements. Consequently, undue reliance should
not be placed on these forward-looking statements.
Factors that could cause actual results to differ materially from what is
expressed or forecasted in forward-looking statements include, the failure to
consummate the private placement of our common stock. Forward-looking statements
in this release represent the Company's judgment as of the date of this release.
The Company undertakes no obligation to update publicly any forward-looking
statements, whether as a result of new information, future events, or otherwise.
http://www.newscom.com/cgi-bin/prnh/20000522/FLM035LOGO
http://photoarchive.ap.org/
DATASOURCE: FARO Technologies, Inc.
CONTACT: Greg Fraser, EVP & CFO, FARO Technologies, +1-407-333-9911; or
Vic Allgeier of The TTC Group, +1-212-227-0997, for FARO Technologies
Web site: http://www.faro.com/