Message #2 From:
Stock News Bot Date: July 15, 2005 12:05:00 AM
TRIN News Trinsic Announces Common Stock Rights Offering
TAMPA, Fla.--(BUSINESS WIRE)--July 15, 2005--Trinsic, Inc., (NASDAQ/SC:TRIN) announced today its intention to proceed with a common stock rights offering pursuant to which shareholders of record as of a record date to be determined, on or about the rights offering launch date, will be issued, for each share of common stock owned as of the record date, non-transferable rights entitling the holder to purchase one share of common stock per right. The number of rights issued to holders per share of common stock and the price of exercising each right will be determined by the conversion price of the Company's Series H Preferred Stock on September 30, 2005. In the event that the Series H Preferred Stock is convertible at $0.39 per share, holders will receive approximately 2.4 rights per share of common stock held as of the record date, each exercisable for $0.39. In the event that the Series H Preferred Stock is convertible at $0.20 per share of common stock, holders will receive approximately 4.7 rights per share of common stock held as of the record date, each exercisable for $0.20. The 1818 Fund III, L.P. (the "Fund"), Trinsic's largest shareholder, has agreed not to exercise rights it receives in the rights offering. In the event that Trinsic proceeds with a possible reverse stock split, the number of rights issued per post reverse stock split share will not change, but the aggregate number of rights issued will be proportionately reduced by the final reverse stock split ratio. Trinsic reserves the right to change the terms and conditions of the rights offering from those described above at any time prior to the rights offering launch date. The final terms and conditions of the rights offering, including the final share purchase price will be set forth in a prospectus which will be distributed to Trinsic shareholders at least 15 days before the purchase rights expire.
Trinsic said it intends to commence the rights offering by mailing the offering prospectus to shareholders as soon as practicable but noted that the registration statement relating to the offering is subject to review by the Securities and Exchange Commission, and that accordingly the exact timing of the record date for the rights, the distribution of the rights and the related prospectus, and of the completion of the offering, cannot be predicted at this time.
To the extent that the rights are exercised, Trinsic expects to use the proceeds of the rights offering for general corporate purposes, including working capital. Trinsic may allow new investors to purchase common stock pursuant to otherwise unexercised rights in the rights offering.
This press release does not constitute an offer of any securities for sale.
