CHARLTON, Mass., Jan. 16 /PRNewswire-FirstCall/ -- FiberCore, Inc.
(Nasdaq: FBCE), a leading manufacturer and global supplier of optical fiber
and preform for the telecommunication and data communications markets, today
announced that it has closed on a private placement of $6 million in 5%
Convertible Subordinated Debentures to institutional investors, with the
option to increase the total dollar amount up to $9 million.
Under the terms of the transaction, FiberCore received $5 million at
closing and will receive an additional $1 million upon the effectiveness of a
registration statement to be filed in connection with the transaction. Each
of the parties has an option to place up to an additional $3 million of the
Debentures under certain conditions, provided, the aggregate additional
placement does not exceed $3 million. The proceeds will be used to support
FiberCore's capital expenditure program, including the recently announced
capacity expansion and productivity initiatives in Germany, as well as for
other corporate purposes.
"We are fortunate to have the commitment of strong, flexible financing
partners in today's challenging marketplace," commented Dr. Aslami, President
and CEO. "Even in this market environment, new opportunities continue to
present themselves to expand our business. As the only independent fiber
supplier, we remain a favored supply source for independent cablers around the
world and continue to match our expansion program to the demands from our
current customer base."
Merrill Lynch, the Company's investment banker, acted as placement agent.
FiberCore, Inc. develops, manufactures and markets single-mode and
multimode optical fiber preforms and optical fiber for the telecommunications
and data communications markets. In addition to its standard multimode and
single-mode fiber, FiberCore also offers various grades of fiber for use in
laser-based systems up to 10 gigabits/sec, to help guarantee high bandwidths
and to suit the needs of Feeder Loop (also known as Metropolitan Area
Network), Fiber-to-the Curb, Fiber-to-the Home and Fiber-to-the Desk
applications. Manufacturing facilities are presently located in Jena, Germany
and Campinas, Brazil.
For more information about the company, its products, or shareholder
information please visit our Website at: http://www.FiberCoreUSA.com or contact us
at: Phone - 508-248-3900 or by FAX - 508-248-5588 or E-Mail:
sales@FiberCoreUSA.com ; investor_relations@FiberCoreUSA.com
Except for the historical matters discussed above, the statements in this
press release are forward looking and are made pursuant to the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995. They are
based on the Company's current expectations and are subject to a number of
risks and uncertainties. Actual results may differ materially from those
projected as a result of certain general economic and business conditions;
loss of market share through competition; introduction of competing products
by other companies; changes in industry capacity; pressure on prices from
competition or from purchasers of the Company's products; availability of
qualified personnel; the delivery of an ability to commission new equipment as
scheduled; ability to obtain required financing; dependence on a limited
number of raw material suppliers; the loss or reduced creditworthiness of any
significant customers; and other factors detailed from time to time in the
Company's filings with the Securities and Exchange Commission.
SOURCE FiberCore, Inc.
 back to top
Related links:
http://www.FiberCoreUSA.com
CONTACT:
Dr. Mohd A. Aslami, President-CEO, or Robert
Lobban, CFO, both of FiberCore, Inc., +1-508-248-3900, or
General, Alison Ziegler, Analysts, Peter Seltzberg, or Media,
Judith Sylk-Siegel, all of FRB Weber Shandwick, +1-212-445-8400
|
