ADSX - NEWS - BEACH, Fla., May 23, 2003 (BUSINESS WIRE) --
Applied Digital Solutions, Inc. (Nasdaq:ADSX), an advanced technology development company, announced today that it has signed Securities Purchase Agreements to sell an additional 12.5 million previously registered shares to the same investors who agreed to purchase 25 million shares as announced on May 9, 2003.
Placement agent J. P. Carey Securities made the arrangements for the sale subject to certain closing conditions. J. P. Carey is a registered broker-dealer and member of the NASD engaged by the Company to act as its placement agent under the terms of a placement agency agreement.
The Company will use the proceeds of this sale towards the satisfaction of its debt obligation to its senior lender, IBM Credit LLC. Under the Forbearance Agreement with IBM Credit (announced on March 27, 2003), the Company has the right to purchase all of its debt of approximately $95 million (including accrued interest) with a payment of $30 million by June 30, 2003, subject to continued compliance with the terms of the Forbearance Agreement. If this payment is made on or before June 30, 2003, Applied Digital would satisfy its full obligation to IBM Credit. As of this date, the Company is in compliance with all terms of the Forbearance Agreement.
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