28 Sep 2004 - PowerLinx, Inc. Executes $3 Million Private Placement
Company Preparing to Apply for Exchange Listing
TIERRA VERDE, Fla., Sept. 28 /PRNewswire-FirstCall/ -- PowerLinx, Inc. (OTC Bulletin Board: PWLX - News), the leader in powerline communication products announced today the completion of $3.18M in private placements to certain institutional investors, accredited investors, and directors. The total $3.18M private placement consists of 22.17M shares of common stock, together with 3.3M warrants to acquire additional shares of common stock. Upon exercise, these warrants would yield additional cash proceeds to the Company of approximately $1,663,000 in total. The Company has now executed an aggregate total of $4.8M in private placements during the 3rd quarter which includes those previously announced July 21, 2004 and August 17, 2004. The Company expects to register the private placements shortly.
The Company intends to use these recently raised funds to fulfill the recent purchase contract for our digital powerline surveillance systems which will require inventory acquisition, product and technical support, and various administrative expenses.
Further, as previously announced, the Company intends to use the previously raised funds to: expand our sales force internally and externally, launch and market the new SecureView® PLVS Plus home monitoring system, complete commercialization of digital powerline products, expand direct television marketing, increase advertising and marketing expenditures in appropriate markets and product segments, begin the process of certifications to allow distribution in international markets and for general overhead expenses.
The addition of the net proceeds of this funding enhances the Company's balance sheet, putting the Company in a position to apply for an exchange listing. The Company will now accelerate the process of that application.
POWERLINX(TM) is a leader in the field of powerline communications products (PLC). PowerLinx's proprietary analog and digital powerline technology is at the core of its value proposition. These two transmission technology schemes allow PowerLinx to take full advantage of a number of exciting and continually expanding market segments. These market segments currently consist of vehicle viewing systems; hotel and multiple dwelling units high speed internet; and entertainment, networking and security products. With PowerLinx's expertise in analog and digital systems, PowerLinx has combined its technology with our extensive sourcing expertise to provide price competitive, quality products to the market. Our products provide the reliability, cost and ease of installation that the customers want in these market segments. This focus of reliability, cost and ease of installation provides PowerLinx with a competitive advantage over its competitors. PowerLinx provides transmission products that span all copper wiring segments; coax, twisted pair and electrical AC or DC circuits. These products are sold to original equipment manufacturers (OEM), dealers, distributors, retailers, and consumers throughout the world.
The Company also develops, manufacture and sell different kinds of underwater video cameras, lights and accessories for the marine, commercial and consumer retail markets under the SeaView(TM) brand name.
About PowerLinx, Inc.:
PowerLinx, Inc., http://www.power-linx.com, develops, manufactures, and markets, among other devices, products, and applications developed to transmit voice, video, audio and data either individually or any and all combinations over power lines, twisted pair wires and coax in AC and DC power environments, on any and all power grids. The Company has also developed, manufactured, and marketed different kinds of underwater video cameras, lights and accessories for the marine, commercial and consumer retail markets.