PITTSBURGH--(BUSINESS WIRE)--Wizzard Software (OTCBB:WIZD) announced today that it has entered into a
definitive agreement for a $1,750,000 million private placement with
institutional investors.
"We greatly appreciate the tremendous vote of confidence in Wizzard that
this financing represents from our institutional investors," said Chris
Spencer, CEO of Wizzard Software. "The capital infusion allows us to
continue funding our recently announced podcasting acquisitions and will
allow us to accelerate the expansion of our podcasting efforts, in which
we see tremendous growth potential."
The eighteen month Convertible Notes to be issued in the financing will
bear an interest rate of prime, per annum, and will be convertible into
Wizzard common stock for the conversion price of $2.00 per share,
determined by the closing share price on October 19th.
As part of this transaction, the Company will also issue three year
warrants to purchase 437,500 shares of common stock that are exercisable
at $2.50 per share. Additionally, the Company will issue warrants to
purchase 875,000 shares of common stock that are exercisable at $2.00
per share which expire 180 days post effective registration notice.
“If all warrants are exercised the Company
will receive an additional $4,593,750 in proceeds allowing it to
continue to fund podcasting acquisitions and technical infrastructure
development,” says Gordon Berry, Wizzard CFO. “With
this funding and our announced acquisitions, we believe Wizzard is
positioned to be a major player in the emerging world of Web 2.0.”
Please refer to the Company's Form 8-K filing, which it intends to file
shortly, for a complete description of the securities to be issued and
detailed terms of the financing.
About Wizzard Software:
Founded in 1996, Wizzard Software has become a leader in the speech
technology application development market. Wizzard architects solutions
to business problems using its expertise in consulting, speech
development tools and building speech based applications for the Desktop
and Internet. Wizzard has achieved global recognition because of its
expertise with voice communication whether it is via computer or
telephone. Wizzard's successes have led to expanding speech technology
opportunities in both the government and commercial sectors including
several healthcare industry products and services. For more information,
visit www.wizzardsoftware.com.
Legal Notice
Legal Notice Regarding Forward-Looking Statements: "Forward-looking
Statements" as defined in the Private Securities litigation Reform Act
of 1995 may be included in this news release. These statements relate to
future events or our future financial performance. These statements are
only predictions and may differ materially from actual future results or
events. We disclaim any intention or obligation to revise any
forward-looking statements whether as a result of new information,
future developments or otherwise. There are important risk factors that
could cause actual results to differ from those contained in
forward-looking statements, including, but not limited to risks
associated with changes in general economic and business conditions,
actions of our competitors, the extent to which we are able to develop
new services and markets for our services, the time and expense involved
in such development activities, the level of demand and market
acceptance of our services, changes in our business strategies and acts
of terror against the United States.
