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Zenobia Austin Laura Fulda
Public Relations Manager Director, Investor Relations
Beyond.com and Corp. Communications
(408)855-2768 Beyond.com
[email protected] (408)855-2728
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BEYOND.COM RECEIVES $40 MILLION COMMITMENT IN PRIVATE FUNDING
SANTA CLARA, Calif. - Oct. 31, 2000 - E-commerce services provider
Beyond.com(TM)(Nasdaq: "BYND") today announced that it has received a commitment
to provide the company with up to $40 million in private equity funding.
The funding agreement is from a private investment fund. This is a one-year
agreement that can be extended for an additional year at Beyond.com's
discretion. Under the agreement, Beyond.com will have the right (but not the
obligation) to obtain as much as $40 million through the issuance of common
stock to the fund in a series of drawdowns. The drawdowns are subject to the
satisfaction of a number of conditions, including the filing of a registration
statement with the Securities and Exchange Commission covering the resale of the
shares. Pricing will be based upon the volume weighted average price of the
company's stock during the investment period. Beyond.com's use of the funds will
be for capital expenditures and working capital needs.
"This is phase one of our financing plan," said Curtis Cluff, chief financial
officer of Beyond.com. "Used judiciously in combination with other planned
financing, this facility will bolster our balance sheet as the company works
towards its financial goals."
"This type of financing will allow us to access committed capital in a series of
smaller draws over time," Cluff explained. "We believe that this is an important
part of our approach to maintaining adequate working capital while minimizing
the dilutive impact on currently outstanding shares."
The securities referred to herein will not be registered under the Securities
Act of 1933 (the "1933 Act") and may not be offered or sold in the United States
without registration or the availability of an applicable exemption from
registration requirements. This announcement does not constitute an offer to
sell or the solicitation of an offer to buy common stock of Beyond.com.
ABOUT BEYOND.COM
Beyond.com is an e-commerce services provider that builds, manages and markets
online stores for businesses. The company also sells software and
computer-related products to consumers and U.S. Government agencies. The
company's BuyDirect Group provides eStores by Beyond.com, a suite of services
that enables software developers, systems OEMs and hardware manufacturers to
market and sell over the Internet. Beyond.com's Government Systems Group
provides digital distribution of software and related services to a growing list
of U.S. Government agencies. Beyond.com Corporation trades on the Nasdaq
National Market under the symbol ("BYND"). More information on the company can
be found in the company's filings with the Securities and Exchange Commission
("SEC").
SAFE HARBOR STATEMENT
Certain statements in this press release are forward-looking within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These include statements relating
to (i) Beyond.com's ability to satisfy the conditions necessary so that it can
effect a drawdown and sell common stock (ii) Beyond.com's ability to secure its
planned financing; (iii) the amount of control Beyond.com has over any dilutive
impact to its stock. Such statements are subject to substantial risks and
uncertainties, including the risk that the equity facility is limited by share
price and volume. Actual results for the fourth quarter of 2000 and subsequent
quarters could differ materially from any future performance suggested above.
Factors that might cause such a difference include, but are not limited to,
unforeseen market conditions that could impact the company's ability to control
any dilutive impact, and the company's ability to remain in compliance with the
terms of the equity financing line, as well as other risk factors described in
the company's filings with the SEC. Beyond.com news and product/service
information is available at the company's World Wide website located at
http://www.beyond.com.
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