MERLIN SOFTWARE ANNOUNCES $2.1 MILLION FUNDING
FOR IMMEDIATE RELEASE
BURNABY, B.C. AUGUST 24TH, 2000 MERLIN SOFTWARE TECHNOLOGIES
INTERNATIONAL INC. (OTCBB: MLSW), a leading developer of Linux based software
applications and utilities, today announced the completion of a private
placement.
Under the terms of the placement Merlin sold an aggregate of US $2.1 million in
Convertible Notes and 1,520,000 Share Purchase Warrants. $1.1 million was
advanced to the company at closing and a further $1.0 million is due seven
trading days after the effectiveness of a registration with the SEC.
The registration statement will qualify the resale of the shares of the
Company's common stock, issuable upon the conversion of the Convertible Notes
and the exercise of the Share Purchase Warrants. The funding of the second
tranche is subject to certain conditions as set out in the Note and Warrant
Purchase agreement.
The Convertible Notes mature on August 18, 2003 and are convertible into shares
of the company at a fixed conversion price of $1.60 or such lesser adjustable
price as calculated according to the terms of the Convertible Notes agreement.
The terms of the agreement include a no-shorting provision, a mandatory
conversion right and a right to prepay the Convertible Notes.
The Share Purchase Warrants entitle the holders thereof to purchase up to
1,520,000 shares of the Company's common stock at an exercise price of US $1.75
per share, subject to adjustment according to the terms of the Share Purchase
Warrants agreement.
The Convertible Notes and the Share Purchase Warrants offered by the Company
have not been registered under the Securities Act of 1933 and may not be offered
or sold in the United States absent registration or an applicable exemption from
the registration requirements of the Securities Act of 1933.
Additional information regarding this placement and the Company's operations can
be found through one of the contacts listed below, by visiting the Company's web
site at http://www.MerlinSofTech.com/ or by reviewing the company's filings at
the SEC on http://www.freeedgar.com/.
COMPANY CONTACT:. . . INVESTOR RELATION CONTACT: AGENCY CONTACT:
--------------------- -------------------------- --------------------
Robert Heller . . . . Merlin Software Karen Thomas
Merlin Software . . . (877) 988-7227 Thomas PR
(877) 988-7227. . . . [email protected] (516) 549-7575
[email protected] [email protected]
--------------------- -------------------------- ---------------------
