We had this EXACT same promise from management 2 1/2 years ago...."Funds to Be Utilized to Commercialize Argus One and Expand GTC Customer Base". That clearly didn't happen, GE had no problem taking his yearly salary though. Why should we believe this time is going to be any different....with less money?
World Surveillance Group Announces $5.5 Million Institutional Financing
Funds to Be Utilized to Commercialize Argus One and Expand GTC Customer Base
KENNEDY SPACE CENTER, FL -- (MARKET WIRE) -- 02/07/12 -- World Surveillance Group Inc. (OTCBB: WSGI), a developer of lighter-than-air unmanned aerial vehicles ("UAVs") and related technologies, announced today that the Company has closed on a Securities Purchase Agreement with a California-based institutional investor (the "Investor") for an aggregate of $5.5 million (the "Financing"). The $500,000 initial tranche of the Financing, which was funded at the closing, was issued in connection with a Convertible Debenture due in January 2015 and an Equity Investment Agreement (the "EIA"). Pursuant to the EIA, the Investor agreed to invest an additional $5.0 million in monthly tranches beginning on the effectiveness of a registration statement the Company will file with the Securities and Exchange Commission, but not prior to 91 days following the closing. The Investor also has the right to purchase an additional $5.0 million of our common stock at an exercise price of $0.21 per share for a period of three years, for a total potential investment of $10.5 million.
The Company plans on using the proceeds of the Financing to expand the operations of both WSGI and its subsidiary, Global Telesat Corp. ("GTC"), as well as to commercialize and further market our Argus One line of UAVs. The Company expects to deploy resources to continue the Government sponsored flight testing and demonstration of our Argus One UAV in Nevada where the aircraft currently resides, inflated in a hangar. We also intend to use a portion of the proceeds from the Financing to pursue GTC contracts for the construction of satellite ground stations, as well as to expand GTC's sales and marketing efforts to both potential Government and commercial customers. The Company also expects to advance its partnership with Oklahoma State University - University Multispectral Laboratories, LLC ("UML"), to support additional technical development of our airships as well as flight testing and demonstrations at UML's Oklahoma Training Center-Unmanned Systems ("OTC-US") within the U.S. Army's Fort Sill restricted airspace. WSGI and UML recently completed certain required flight safety procedures and are in the process of finalizing a series of flight exercises in Oklahoma following the Argus One UAV flight exercises in Nevada.
WSGI Chairman of the Board Michael K. Clark stated, "I am pleased we have formed a relationship with such an established institutional partner and we look forward to growing our institutional investor base as we progress with our business plan throughout 2012. The additional financial resources now available to the Company should allow our team and partners to accelerate and continue to execute the Company's strategic plan."
WSGI President and CEO Glenn D. Estrella indicated, "With the proceeds from the Financing, in addition to commercializing and marketing our UAV airships, we intend to deploy substantial resources to accelerate our GTC product and marketing efforts. We look forward to a successful relationship with our new institutional partner and expect that with the additional resources available to us, we will be able to continue to strengthen our balance sheet and increase shareholder value."
News 
Market Data 
Discover 
