Gamecom/Ferris puts together an Awesome Financing Deal!
Friends and shareholders:
Attached is this morning's press release announcing GameCom's recently-negotiated
relationship with Olympic Holdings, L.L.C., pursuant to which Olympic will fund $1 million in
growth capital to GameCom/Ferris over the next couple of months.
In conjunction with the Ferris merger, I have been seeking a capital infusion to see the
company through the merger, and to help launch the "new" company. With funding
opportunities in decline, I have encountered the usual suspects of financing vehicles, from
proposed hugely-discounted sales of free-trading shares to the typical "death spiral
convertible" offerings.
However, take a close look at our arrangement with Olympic, and I'm very confident you'll be
very pleased. The three debentures, to be issued as Olympic provides the funds in three
traunches over the next two months, bear interest at only six percent, and are convertible at
market rate into restricted shares, to be held a minimum of one year from the last delivery of
funds to GameCom/Ferris. That's it. No discounts to market, no reset provisions.
We are almost equally excited with our new consulting arrangement with Olympic. Its principals
have an excellent track record in finding suitable private companies for acquisition. In fact, a
potential acquisition target brought to our attention by Olympic is how this relationship started.
While we will be taking a careful look at this company beginning next week, after we catch our
breath following completion of the Ferris merger, the more we talked with Olympic, the broader
the discussions became. This debenture and this consulting agreement resulted from those
broader discussions.
Stay tuned, as we look forward to a successful shareholders' meeting this afternoon.
These are simply my personal comments, and should not be relied upon in your investment
decisions. I strongly urge you to conduct your own due diligence with regard to an investment
in GameCom. I respectfully refer you to GameCom's filings with the Securities and Exchange
Commission.
L. Kelly Jones, GameCom CEO
GameCom Secures $1,000,000 in Funding
ARLINGTON, Texas, Sep 21, 2001 (BUSINESS WIRE) -- GameCom,
Inc. (OTCBB:GAMZ), www.GameComInc.com -- a leader in interactive
Internet gaming -- today announced that it has successfully placed
$1,000,000 in convertible debentures with Olympic Holdings, L.L.C.
In addition, the Company has retained Olympic to seek appropriate
acquisition targets for continued expansion.
Olympic, based in Bethesda, Maryland, with a satellite office in Virginia
Beach, Virginia, is a financial, corporate advisory, and investment firm
specializing in the active turnaround of companies in the biotechnical,
biomedical, and medical support industries.
"We are delighted with this financing package from Olympic,"
commented L. Kelly Jones, GameCom's chief executive officer.
"Olympic exhibited real interest and excitement over the future of our
company. In addition, the extremely favorable conversion terms of the
debenture reflect Olympic's confidence in our ability to execute upon our
business plan. Once the Ferris merger is completed, Olympic will assist
us in our continuing efforts to look for opportunities to expand our reach
in the interactive computer gaming and virtual reality fields."
"We are very excited about GameCom/Ferris' future, as evidenced by
our capital infusion," said William E. K. ("Kyle") Hathaway II, manager of
Olympic. "The Company has an exciting story to tell, with excellent
management. We look forward to being long-term participants in the
future of GameCom/Ferris."
The terms of the financing requires Olympic to fund $1,000,000 in three
phases, the first of which will commence next week with the third phase
funded by November 15, 2001. In addition, the convertible debentures
have the right to be converted into common shares of GameCom based
upon the Company's market price at the time of funding for each phase.
The conversion feature does not contain any provisions for a discount to
market price.
About GameCom
GameCom, based in Arlington, Texas, is a fully reporting, publicly
traded Texas corporation. GameCom designs, manufactures, and
assembles `Net GameLink(TM), an interactive Internet gaming concept
featuring network-enabled gaming kiosks. Based in Phoenix, Arizona,
Ferris is the world's largest and fastest growing producer of integrated
hardware and software technology to the immersive virtual reality
industry.
This press release contains certain forward-looking statements.
Forward-looking statements are generally preceded by the words such
as "plans," "expects," "believes," "anticipates," or "intends." Investors
are cautioned that all forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from
current expectations. GameCom urges investors to review in detail the
risks and uncertainties contained within its filings with the Securities
and Exchange Commission.
CONTACT: Magnum Financial Group, LLC
Kari Rundquist, 213-488-0443
kari@magnumfinancial.com
