Message #1 From:
NewsBot Date: January 25, 2005 09:45:59 AM
ABWG A B Watley Group Inc,Stock Trading Message Board News
AB Watley Group Announces Debt Reduction of $13.5 Million
NEW YORK--(BUSINESS WIRE)--Jan. 25, 2005--AB Watley Group Inc. (OTCBB:ABWG), a financial services holding company, today announced the results of its corporate debt reduction plan. For the Fiscal Year Ended September 30, 2004 (FY 2004), the Company reduced total Liabilities and Preferred Stock by $13.5 million, or 46%, from $29.4 million as of September 30, 2003 to $15.9 million as of September 30, 2004 through the following proactive measures:
-- Sold 5 million shares of common stock for $2 million in a
private placement transaction. The Company has received $1
million toward the purchase of the shares, with the balance to
be received in quarterly installments through April 1, 2005
-- The holders of the Series A Redeemable Convertible Preferred
Stock, which was recorded at $6,867,001 including dividends
and interest, exchanged their preferred stock for warrants to
purchase 6,242,729 shares of common stock of the Company. The
exercise price for each of the common shares to be received is
$0.01. The warrants have a term of seven years and expire in
June 2011
-- Certain note holders agreed to forgive notes payable,
including accrued interest, in the amount of $1,102,500 in
exchange for warrants to purchase 987,771 shares of common
stock of the Company. The exercise price for each of the
common shares to be received upon exercise of the warrants is
$0.01. The warrants have a term of seven years. The impact of
the forgiveness of the notes payable and the issuance of
warrants was to decrease Notes Payable by $900,000, decrease
Accrued Liabilities, for accrued interest, by $202,500 and to
increase Additional Paid-in Capital $1,102,500
-- Reached an agreement with certain note holders to forgive
notes payable, including accrued interest, in the amount of
$2,725,321 in exchange for warrants to purchase 1,000,000
shares of common stock of the Company
-- Exercise price for each of the common shares to be
received upon exercise of the warrants is $0.19
-- Company agreed to amend an existing warrant agreement, for
1,000,000 shares of common stock of the Company, held by
the note holder to reflect a decrease in the exercise
price from $0.918 to $0.01
-- Warrants will have a term of seven years
-- There was no financial statement impact for the amendment
to the warrant exercise price
-- Impact of the forgiveness of the notes payable and the
issuance of warrants was to decrease Notes Payable by
$2,182,826, decrease Accrued Liabilities for accrued
interest by $542,495 and to increase Additional Paid-in
Capital $2,725,321.
"We are pleased by the results of our debt reduction plan. By focusing on debt reduction and addressing our liquidity and capital resource needs we are working to ensure the long-term viability of the Company," said Robert Malin, President of AB Watley Group. "The sale of 5 million shares of common stock for $2 million or 40 cents per share, extensive cost cutting initiatives and efforts to raise additional funds by issuing debt or equity securities are putting us in a much better position to pursue strategic relationships and business-to-business offerings. We are much more competitive with regards to pricing and technology and are in a position to consider attractive acquisitions which will allow us to continue to grow."
About AB Watley Group Inc.
AB Watley Group Inc. (Ticker Symbol "ABWG.OB") is a publicly held financial services holding company. The Company conducts its core business through its subsidiary AB Watley Direct, Inc., a U.S. registered broker-dealer that provides online trading and direct access trading services for retail and institutional clients. AB Watley Group provides direct access software and facilities to each of its divisions (online, retail and institutional). The Company's main focus is supporting its brokerage units' initiatives.
Statements contained in this release, which are not historical facts, may be considered "forward-looking statements" and are based on current expectations and the current economic environment. We caution the reader that such forward-looking statements are not guarantees of future performance. Unknown risk, uncertainties, as well as other uncontrollable or unknown factors could cause actual results to materially differ from the result, performance, or expectations expressed or implied by such forward-looking statements.
Contacts
AB Watley Group Inc.
Robert Malin, 212-500-6500
rmalin@abwatley.com
or
Adam Friedman Assoc.
Media:
Rick Hilton, 212-981-2529 ext. 22
rick@adam-friedman.com
or
Investors:
Leslie Wolf-Creutzfeldt, 212-981-2529 ext. 11
leslie@adam-friedman.com
