Science Dynamics (fka SIDY)

[jigjag]

More shares availble but less debt.




Science Dynamics Completes Laurus Financing Restructuring
Wednesday July 26, 11:39 am ET
Liens and Obligations Removed, Paves Way For Growth


PENNSAUKEN, N.J., July 26 /PRNewswire-FirstCall/ -- Science Dynamics Corporation (OTC Bulletin Board: SIDY - News), a provider of advanced technological solutions to key government agencies and enterprise customers, announced today it has entered into an agreement to restructure its debenture with the Laurus Master Fund.
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CEO Paul Burgess said, "This restructuring represents a critical achievement for Science Dynamics. We have agreed to pay off the entire $2 million debenture with Laurus in exchange for a waiver of previous defaults and removal of all related liens and indebtedness. In addition to saving Science Dynamics significant fees and penalties, this agreement strengthens our balance sheet and enables us to seek additional financing more favorable to shareholder growth.

"Science Dynamics is in a dramatically different financial position as a result of this agreement," said Burgess. "Laurus played an important role in the progress we have made over the past several years, enabling us to finance the acquisition of SMEI and providing us with working capital as we transformed our business. Since placing the convertible with Laurus in February of last year, we completed a transformative acquisition, grew sales to $4.7 million on a trailing 12-month basis and became EBITDA positive as we grew the value of our service contracts with clients to more than $16 million. We appreciate Laurus' assistance and their continuing confidence in us. Laurus will continue to be an important shareholder."

Science Dynamics will pay off the existing Laurus $2 million debenture by August 31, 2006. The company will pay Laurus $500,000 in cash and issue 1 million restricted common shares immediately and will pay another $250,000 in cash to Laurus on August 1, 2006. By August 31, 2006, Science Dynamics will issue an additional 8,333,333 restricted common shares and pay $750,000 in cash to Laurus. In exchange, Laurus will consider the existing convertible debenture repaid in full and will waive all previous defaults and liens on the company. Upon fulfilling the terms of this agreement, Science Dynamics will have no outstanding indebtedness to Laurus.

For additional details on the terms of the agreement between the company and Laurus, see Form 8-K filed by the company with the Securities and Exchange Commission on January 26, 2006.

About Science Dynamics Corporation

Science Dynamics Corporation (SciDyn) is a provider of advanced information and communications technology to the government and commercial markets. The company's technology services division designs, deploys and manages advanced technological solutions at key government agencies and mid- to large-sized enterprises. SciDyn's technology products division consists of several core proprietary platforms used to develop customized software applications with military grade security in multiple vertical markets. For more information, visit http://www.scidyn.com .

An investment profile about Science Dynamics may be found at http://www.hawkassociates.com/sciencedynamics/profile.php .

For investor relations information regarding Science Dynamics, contact Frank Hawkins or Julie Marshall, Hawk Associates, at [phone], e-mail: [e-mail] . An online investor relations kit including copies of press releases, current price quotes, stock charts and other valuable information for investors may be found at http://www.hawkassociates.com and http://www.americanmicrocaps.com .

Forward-Looking Statements: Certain statements made in this press release by Science Dynamics Corporation are forward-looking statements. Although such statements are based on current expectations, they are subject to a number of future uncertainties and risks, and actual results may differ materially. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. Statements made in this document that are not purely historical are forward- looking statements, including any statements as to beliefs, plans, expectations, anticipations or intentions regarding the future. Science Dynamics Corporation assumes no obligation to update information concerning the forward-looking statements contained herein.




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Source: Science Dynamics Corporation