DWLD - DataWorld Solutions Restructures Balance Sheet Eliminating Over $2 Million in Debt; Creditors Convert Debt to Equity at Substantial Premium to Price of Company's Common Stock
6/8/2004 10:24:00 AM
HAUPPAUGE, N.Y., Jun 8, 2004 (BUSINESS WIRE) -- DataWorld Solutions, Inc. (DWLD) announced today that it has executed a series of agreements that will reduce its overall indebtedness by over $2 million. The agreements, which are part of the Company's continued initiatives to improve its balance sheet, will result in the exchange of $2.3 million in debt and other liabilities in return for a $250,000 note and restricted shares of the Company's common stock valued at $1.75 per share. This represents a premium in excess of 300 percent to the current market price of the Company's common stock. DataWorld's common stock closed Monday at $0.40 per share. The Company is continuing negotiations with other creditors to further reduce its indebtedness.
"We have worked hard over the past six months to improve our balance sheet, bring our public reporting requirements up to date to obtain a listing on the Over-the-Counter Bulletin Board and to build our security and defense business," said Daniel McPhee, the Company's President. "The conversion by our creditors of debt to equity at a significant premium to the price of our common stock reflects their confidence in our future prospects. We believe that the combination of robust business prospects and a strengthened financial condition will play an important role in delivering long-term, sustainable value for shareholders."
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