Message #14 From:
NewsBot Date: October 2, 2006 12:38:00 PM
CYRO News Chyron Announces Conversion of Its Remaining Debentures
MELVILLE, N.Y.--(BUSINESS WIRE)--Chyron Corporation (OTCBB: CYRO) announced that it has eliminated all of
its non-bank debt following a decision by all of the holders of the
Company’s last remaining debentures (Series D
8 Percent Subordinated Convertible Debentures) to convert them to
restricted common stock. The aggregate total for these debentures is
$2,663,898.18. The debentures were held by Christopher R. Kelly, the
Company’s Chairman, and UK-based Lion
Investments Limited and Westpool Investment Trust plc, units of Leo Fund
Managers Limited.
President and CEO Michael Wellesley-Wesley commented, “We
are happy to have completed this transaction as it cleans up the Company’s
balance sheet, having reduced its debenture debt to zero and easing the
pressure on cash flow, as well as on the P&L through considerable
savings where interest expense is concerned. When I became CEO in early
2003, total debt was $18.3 million and cash was $2.2 million. Today
total debt stands at less then $1.0 million in bank debt and cash is
over $4 million.”
As a result of the transaction, the total outstanding debentures were
converted into 4,098,303 shares of restricted common stock of the
Company based upon the conversion price of $0.65 and all debentures were
cancelled. This conversion represents 9.9 percent of the total shares
issued and outstanding immediately prior to the conversion and increases
the total number of shares outstanding to 45,623,839.
Chyron Corporation
With unwavering clarity of vision, Chyron continues to define and
dominate the world of broadcast graphics. Winner of numerous awards,
including two Emmys, Chyron has proven itself as the undisputed leader
in the industry. From the entry-level MicroX to the HD/SD-switchable
HyperX with Lyric PRO, Chyron’s exceptional
product line brings unmatched, 2D and 3D graphics creation and
performance to the most demanding studio and mobile operations. Rounding
out Chyron’s graphics offerings are still and
clip servers, channel branding and telestration systems, MOS newsroom
integration solutions and the award-winning WAPSTER mobile phone
newsgathering application. The ChyTV product line leverages Chyron’s
broadcast expertise with video graphics devices for microcasting and
digital displays. Chyron holds a patent on technology that enables the
integration of live television graphics data with a broad range of
interactive media platforms and consumer electronics devices. Chyron has
a unique, 40-year history of service and support for its products that
far exceeds that of most manufacturers. For more information about
Chyron products and services, please visit the company web sites at www.chyron.com
and www.chytv.com
(OTC BB:CYRO.OB).
Forward-looking Statement
From time to time, including in this press release, the Company may
publish forward-looking statements relating to such matters as
anticipated financial performance, business prospects, technological
developments, changes in the industry, new products, research and
development activities and similar matters. The Private Securities
Litigation Reform Act of 1995 provides a safe harbor for forward-looking
statements. In order to comply with the terms of the safe harbor, the
Company notes that a variety of factors could cause the Company's actual
results to differ materially from the anticipated results or other
expectations expressed in the Company's forward-looking statements. The
risks and uncertainties that may affect the operations, performance,
development and results of the Company's business include, without
limitation, the following: product concentration in a mature market,
dependence on the emerging digital market and the industry's transition
to DTV and HDTV, consumer acceptance of DTV and HDTV, resistance within
the broadcast or cable industry to implement DTV and HDTV technology,
use and improvement of the Internet, new technologies that could render
certain Chyron products to be obsolete, a highly competitive
environment, competitors with significantly greater financial resources,
new product introductions by competitors, seasonality, fluctuations in
quarterly operating results, ability to maintain adequate levels of
working capital, the viability of the OTC Bulletin Board as a trading
platform and expansion into new markets.
