Intrusion Inc. Closes $5.0 Million Private Placement
March 25 2004 - 3:38PM
PR Newswire (US)
Intrusion Inc. Closes $5.0 Million Private Placement RICHARDSON,
Texas, March 25 /PRNewswire-FirstCall/ -- Intrusion Inc. , today
announced that it has closed a $5.0 million private placement of 5%
Convertible Preferred Stock and warrants. In the private placement,
the company sold 1,000,000 shares of preferred stock at a price of
$5.00 per share, which convert into 6,361,323 shares of common
stock at an initial conversion price of $0.786 per share, and
warrants to purchase 2,226,459 shares of common stock at an
exercise price of $0.786 per share. The conversion price of the
preferred stock and the exercise price of the warrants were based
on the average closing price of the company's common stock on The
Nasdaq SmallCap Market for the five consecutive trading days ending
on March 24, 2004. G. Ward Paxton, the company's Chairman,
President and Chief Executive Officer, and James F. Gero, an
outside director to the company, invested $1,000,000 in the private
placement. The remaining purchaserswere institutional investors and
individual accredited investors. Black Point Partners, Inc. served
as financial advisor to the company in connection with the private
placement and received a warrant to purchase 257,633 shares of
common stock at a price of $0.786 per share, as part of its
compensation. The company intends to file a Form 8-K with the
Securities and Exchange Commission on March 26, 2004 that will
provide a description of the private placement and copies of the
definitive agreements. About Intrusion Inc. Intrusion Inc. is a
leading global provider of the Intrusion SecureNet(TM) line of
leading network intrusion prevention, intrusion detection and
regulated information compliance products, as well as deployment
technologies and security services for the information-driven
economy. The Intrusion SecureNet(TM) family of network security
products for governments and enterprises help protect critical
information assets by quickly detecting, analyzing and responding
to attacks and the misuse of classified and regulated information.
Associated Intrusion SecureNet(TM) Intrusion Detection(R) services
provide unique value to governments and enterprises in protecting
information assets. For more information, please visit
http://www.intrusion.com/ . This release, other than historical
information, may include forward- looking statements regarding
future events or our future performance. These statements are made
under the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995 and involve risks and uncertainties
which could cause actual results to differ materially from those in
the forward looking statements, including, without limitation, the
difficulties in forecasting future sales caused by current economic
and market conditions, the effect of military actions on government
and corporate spending on information security products, the impact
of our cost reduction programs and our refocused product line, the
difficulties and uncertainties in successfully developing and
introducing new products, our ability to continue to meet operating
expenses through current cash flow or additional financings, our
ability to obtain additional financing on acceptable terms, the
highly competitive market for our products, difficulties in
accurately estimating market growth, the consolidation of the
information security industry, the impact of changing economic
conditions, business conditions in the information security
industry, our ability to manage acquisitions effectively, our
ability to manage discontinued operations effectively, the impact
of market peers and their products, as well as other risks and
uncertainties identified in our Annual Report on Form 10-K, our
Definitive Proxy Statement on Schedule 14A filed with the SEC on
February 12, 2004 and other filings with the SEC. Copies of these
filings can be obtained from our Investor Relations department.
None of the securities referenced in this press release have been
registered with the Securities and Exchange Commission. These
securities may not be sold, nor may offers to buy these securities
be accepted, prior to the time registration of these securities
becomes effective, unless an applicable exemption from registration
is available. This announcement is neither an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state in which such offer, solicitation or
sale would be unlawful, prior to such registration or absent such
exemption under applicable federal and state securities laws.
Financial Contact Michael L. Paxton, VP, CFO972.301.3658, Media
Contact Ryon Packer, VP 972.664.8072,
http://www.newscom.com/cgi-bin/prnh/20030703/INTRUSIONLOGO
http://photoarchive.ap.org/ DATASOURCE: Intrusion Inc. CONTACT:
financial, Michael L. Paxton, VP, CFO, +1-972-301-3658, or , or
media, Ryon Packer, VP, +1-972-664-8072, or , both of Intrusion
Inc. Web site: http://www.intrusion.com/
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