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EXHIBIT 99.1
Friday June 16, 9:03 Am Eastern Time
Company Press Release
SOURCE: Wire One Technologies, Inc.
Wire One Technologies Completes $17 Million Private Placement
HILLSIDE, N.J., June 16 /PRNewswire/ -- Wire One Technologies, Inc. (Nasdaq:
WONE - news), a leading video applications service provider, today announced it
has completed the private placement of 2,450 shares of a newly designated Series
A convertible preferred stock and warrants with a select group of institutional
and strategic investors led by Peconic Fund, Ltd., an affiliate of Ramius
Capital Group, and Polycom, Inc. (Nasdaq: PLCM - news).
The private placement, managed by H.C. Wainwright & Co., Inc., raised gross
proceeds of $17.15 million.
The preferred stock is convertible into WONE common stock at a price of $7.00
per share, subject to adjustment and certain conditions, over the three year
term of the securities. The preferred stock will convert automatically if WONE
shares trade at $12.50 or above for twenty consecutive trading days and the
underlying common shares have been registered. The Company has agreed to file a
registration statement registering the common stock underlying the preferred
stock and warrants by July 29, 2000.
The preferred stock investors received warrants to purchase up to approximately
857,500 shares of common stock at an exercise price of $10.50 per share over the
next five years, subject to adjustment. These warrants may be redeemed by the
Company if WONE shares trade above $21.00 for twenty consecutive trading days.
The Company expects to use the net proceeds to fuel growth and expand into
emerging video applications technologies, including the further development and
installation of a global Internet Protocol (IP)-based video communications
subscriber service utilizing DSL access, to be introduced by the Company later
this year and rolled out globally in 2001.
"This funding provides the capital necessary to meet increasing customer demand
across North America and around the world," said Richard Reiss, president and
chief executive officer. Robert Hagerty, president and CEO of Polycom, said, "We
want to ensure the market has access to the most advanced, next-generation
voice, video and data applications. Our relationship with Wire One Technologies
represents a long-term commitment to refining and expanding mass deployment of
video application technologies through broadband communications, including
IP-based networks."
Ramius Capital Group is a private investment firm that makes direct investments
in growth and technology companies. Its principals are Peter Cohen, former
chairman and CEO of Shearson Lehman Brothers; Morgan Stark, former president of
Chemical Securities; Thomas Strauss, former president of Salomon Brothers; and
Jeffrey Solomon, head of direct investments at the firm.
Wire One Technologies, Inc. is one of the world's largest video applications
service providers (Video-ASPs), providing a full range of state-of-the-art
video, voice and network communications solutions to commercial, federal and
state government, medical, and education customers nationwide and across the
globe. Among these
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solutions are comprehensive data transmission solutions, video streaming and
webcasting services, and shortly, a global Internet Protocol (IP)-based
videoconferencing subscriber service, utilizing DSL access, offering
substantially reduced transmission costs and dramatically improved quality of
service (QOS). Wire One Technologies has sales and marketing agreements with
Polycom, Inc., Cisco Systems, RADVision, VCON, PictureTel Corporation, VTEL
Corporation, Accord, Madge Networks, Sony Electronics, Lucent, Panasonic, Active
Voice, AT&T, Sprint, Covad Communications and Digital Island Inc. The Company is
based in Hillside, New Jersey, with some 25 offices nationwide.
H. C. Wainwright & Co., Inc., founded in 1868, is a Boston based investment bank
that provides integrated research, investment banking and capital markets
capabilities in video and voice communications technology, wireless technology,
information technology, software and services and healthcare technologies.
The statements contained herein, other than historical information, are or may
be deemed to be forward-looking statements and involve factors, risks and
uncertainties that may cause actual results in future periods to differ
materially from such statements. These factors, risks and uncertainties include
market acceptance and availability of new products; the non-binding and
nonexclusive nature of reseller agreements with manufacturers; rapid
technological change affecting products; the impact of competitive products and
pricing, as well as competition from other resellers; possible delays in the
shipment of new products; and the availability of sufficient financial resources
to enable the Company to expand its operations.
SOURCE: Wire One Technologies, Inc.
