Locateplus Hldg WT A (MM) (NASDAQ:LPLHW)
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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