14 Oct 2004 - PowerLinx, Inc. Adjusts Private Placement
Company Preparing to Apply for Exchange Listing
TIERRA VERDE, Fla.--(BUSINESS WIRE)--Oct. 14, 2004--PowerLinx, Inc. (OTCBB: PWLX - News), the leader in powerline communication products announced an adjustment from $3.18M to $1.9M in private placements to certain institutional investors, accredited investors, and directors announced September 28, 2004. The Company accepted a reduced amount because of the recent share price appreciation and a delay in transmission of funds by one of the investment groups. The total adjusted $1.9M private placement consists of 12.75M shares of common stock, together with 1.9M warrants to acquire additional shares of common stock. Upon exercise, these warrants would yield additional cash proceeds to the Company of approximately $956,000 in total. The Company has now executed an adjusted aggregate total of $3.5M 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 and may accept additional funding if required at later date.
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.