|
| [January 25, 2006] |
 |
ACT Teleconferencing Launches Rights Offering; 79,600 Shares of Series AA Convertible Preferred Stock Offered to Raise $7.96 Million
DENVER --(Business Wire)-- Jan. 25, 2006 -- ACT Teleconferencing, Inc. (Pink Sheets:ACTT), a leading independent worldwide provider of audio, video and web-based conferencing products and services, today announced it has launched a rights offering for the sale of 79,600 shares of Series AA Convertible Preferred Stock to the Company's existing shareholders, at a purchase price of $100 per share. Shareholders of record on January 3, 2006, will have the right to participate in the offering on a pro-rata basis, with oversubscription privileges in the event the rights offering is not fully subscribed. The rights will expire if they are not exercised by 5:00 p.m. New York City time on February 21, 2006. The Company may extend the period for exercising the rights for up to an additional 20 days.
Holders of the Company's common stock on the record date are entitled to purchase .0047 shares of Series AA Preferred Stock for each share of common stock held. Under the terms of a Securities Purchase Agreement between the Company and Dolphin Direct Equity Partners, LP dated June 30, 2005, Dolphin has agreed to purchase any shares of Series AA Preferred Stock remaining unsold at the expiration of the rights offering. The $7.96 million generated from the rights offering will be used to repay the $7.0 million bridge loan that Dolphin extended to the Company in October 2005, plus interest. The balance of the net proceeds will be used to pay transaction-related expenses, make capital expenditures and for working capital.
A registration statement relating to these securities has been filed with the Securities and Exchange Commission. The rights offering is made only by the prospectus, which will be mailed to each shareholder of record. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.
To view the prospectus, go to http://www.acttel.com/sec.asp and select the link "SEC Filings & Forms (EDGAR)". The link will provide access to the Company's filings with the Securities and Exchange Commission. The prospectus is labeled S-A/3, "(Amend) Registration Statement under Securities Act of 1933" filed on January 17, 2006. Click "html" to access and print the prospectus and exhibits. A prospectus is also available by contacting the Company at Investor Relations Department, 1526 Cole Boulevard, Suite 300, Golden, Colorado, 80401, 303-233-3500.
Statements made in this news release that are not historical facts may be forward-looking statements. Actual results may differ materially from those projected in any forward-looking statement. Unaudited information may not conform to US GAAP. Important factors that could cause actual results to differ materially from those anticipated by any forward-looking information include, but are not limited to, future economic conditions, competitive services and pricing, new competitor entry, financing, the delivery of services under existing contracts and other factors. For a more detailed description of the factors that could cause such a difference, please see the section entitled "Risk Factors" under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" in ACT's Annual Report on Form 10-K for the year ended December 31, 2004, as well as the Company's other filings with the Securities and Exchange Commission. ACT disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of ACT.
About ACT Teleconferencing
Established in 1990, ACT Teleconferencing, Inc. is a leading independent worldwide provider of audio, video and web-based conferencing products and services to corporations, educational organizations, and governments worldwide. ACT's integrated global audio and videoconferencing platforms provide uniform international services, customized uniform billing, managed services, and local language services. The Company's headquarters are located in Denver, Colorado, with operations in Australia, Belgium, Canada, France, Germany, Hong Kong, Singapore, the U.K. and the U.S. and several virtual locations, including Japan, China, Taiwan, Indonesia, Spain, Sweden, Switzerland, Russia, Poland and South Africa. ACT's Internet address is www.acttel.com.
[ Back To cable.tmcnet.com's Homepage ]
|