AXS-One Completes $675,000 Investment by Management and Board Members
September 22 2005 - 7:00AM
PR Newswire (US)
Board of Directors and Management Demonstrate Confidence in
Business RUTHERFORD, N.J., Sept. 22 /PRNewswire-FirstCall/ --
AXS-One Inc. (AMEX:AXO), a leading provider of high-performance
records compliance management software solutions, today announced
that it had received shareholder approval for senior management and
board members to participate by investing $675,000 in the recently
announced financing of $6.75 million, which included a number of
investors such as Potomac Capital and RIT Capital Partners plc.
Under terms of the transaction, which was closed today, AXS-One
sold shares of its common stock for $1.49 per share. In connection
with the sale of common stock, the Company also issued to the
investors three-year warrants to purchase 20 percent of the number
of shares of common stock issued in connection with the offering,
with the warrants being priced at $1.90 and $2.15 in two equal
tranches. The two closings of this transaction resulted in net
proceeds to the Company of approximately $6.45 million after
transaction expenses. UK based RIT Capital Partners plc, the
publicly listed UK investment trust chaired by Lord Rothschild, is
the largest investor in the offering which was led by New York City
based Potomac Capital, an existing shareholder. AXS-One Management
and Board together represent 10 percent of the investment. Kaufman
Bros., L.P. served as the placement agent in this transaction.
"This transaction not only provides additional capital to
facilitate our business plan and growth strategy, but also
demonstrates confidence from several significant institutional
investors, the management team and board of directors in the
Company's direction and the market opportunity for Records
Compliance Management solutions," commented Bill Lyons, AXS-One's
Chairman and Chief Executive Officer. "With the two recent customer
wins and the additional capital infusion, AXS-One management and
its board believe the company is beginning to successfully execute
on its strategy of capturing a meaningful share of the Records
Compliance Management market. As we build off our recent new
customer momentum, with our stronger balance sheet and increased
working capital, we believe we have positioned, AXS-One for
continued near-term success." The shares of common stock and
warrants issuable in the private placement to management and board
members have not been registered under the Securities Act of 1933
and may not be subsequently offered or sold by the investors absent
registration or an applicable exemption from the registration
requirements. AXS-One has agreed to file a registration statement
covering the resale of the securities issued in this transaction
and issuable upon exercise of the warrants. For additional
information, please refer to AXS-One's current report on Form 8-K
to be filed with the Securities and Exchange Commission with
respect to this transaction. Special Note Regarding Forward-Looking
Statements: A number of statements contained in this release are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 that involve risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in the applicable statements. These
risks and uncertainties include, but are not limited to: our
ability to grow license and service revenue; potential
vulnerability to technological obsolescence; the risks that its
current and future products may contain errors or defects that
would be difficult and costly to detect and correct; potential
difficulties in managing growth; dependence on key personnel; the
possible impact of competitive products and pricing; and other
risks described in more detail in AXS-One's Securities and Exchange
Commission filings. About AXS-One Inc. AXS-One Inc. (AMEX:AXO) is a
leading provider of high performance Records Compliance Management
solutions. The AXS-One Compliance Platform enables organizations to
implement secure, scalable and enforceable policies that address
records management for corporate governance, legal discovery and
industry regulations such as SEC17a-4, NASD 3010, Sarbanes-Oxley,
HIPAA, The Patriot Act and Gramm-Leach Bliley. AXS-One's
award-winning technology has been critically acclaimed as best of
class and delivers digital archiving, business process management,
electronic document delivery and integrated records disposition and
discovery for e-mail, instant messaging, images, SAP and other
corporate records. Founded in 1979, and headquartered in
Rutherford, NJ, AXS-One has offices worldwide including in the
United States, Australia, Singapore, United Kingdom and South
Africa. For further information, visit the AXS-One web site at
http://www.axsone.com/. AXS-One, the AXS-One logo, "Access Tomorrow
Today," AXSPoint, and TransAXS are registered trademarks of, and
AXS-One Compliance Platform, AXS-One Rapid-AXS, AXS-One Retention
Manager, "The Records Compliance Management Company," e-Cellerator,
AXS Desk, "AXS-One Collaboration FrameWorks," SMART, AXS-Link and
Tivity are trademarks of AXS-One Inc., in the U.S. All other
company and product names are trademarks or registered trademarks
of their respective companies. Company Contact: IR Contact:
Marie-Charlotte Patterson Matt Hayden AXS-One Inc. Hayden
Communications 201.372.6243 843-272-4653 DATASOURCE: AXS-One Inc.
CONTACT: Marie-Charlotte Patterson of AXS-One Inc.,
+1-201-372-6243, ; or Matt Hayden of Hayden Communications
+1-843-272-4653, , for AXS-One Inc. Web site:
http://www.axsone.com/
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