TUCSON, Ariz., May 5 /PRNewswire/ -- Wavetech International, Inc.
(OTC Bulletin Board: ITEL) announced today the completion of a $5 million
private placement of 6% Series B convertible preferred stock and common stock
purchase warrants.
The Company will use the proceeds primarily to finance the
commercialization of Bestnetcall, the Company's web-based telephony product
(see April 25, 2000 - "Wavetech Launches Internet-Based Telephony Product").
Proceeds will be used to fund marketing and other existing capital needs, to
expand service capacity into its New York and Los Angeles facilities, and to
pay off a $2 million bridge loan executed in mid-December.
Bestnetcall is the industry's first Internet-based long distance service
that provides worldwide access to low-cost long distance with call management
capabilities, without the need for special software or hardware. Businesses
and individuals can now sign up online for Bestnetcall through the Company's
website, http://www.bestnetcall.com. A full market launch is anticipated within the
next month.
Gerry Quinn, President and CEO said, "We are very pleased to have
investors share our confidence in Wavetech as we prepare for full
commercialization of Bestnetcall. We believe this service offers many
advantages over current telephony systems. This funding will enable us to
utilize the best marketing resources available to gain market share and to
become a significant player in this industry."
Wavetech issued a total of $5 million of the convertible preferred
securities. A preferred share carries a dividend of 6% and a conversion price
of 80% of the average closing bid prices of the Company's common stock for the
three lowest trading days out of the ten (10) consecutive trading days
immediately preceding the conversion date or 100% of the average closing bid
prices of the Company's common stock for the five (5) trading days prior to
the date of issuance of the preferred shares. The preferred stock is
redeemable by the Company at any time.
Wavetech is a web-based telephony company, offering advanced products to
businesses and individuals worldwide. To learn more about Bestnetcall, visit
the website at http://www.bestnetcall.com. To contact a company representative,
please send an email to sales@bestnetcall.com.
This press release contains certain forward-looking statements made
pursuant to the Safe Harbor Provisions of the Private Securities Litigation
Reform Act of 1995. This information may involve risks and uncertainties that
could cause actual results to differ materially from such forward-looking
statements. Factors that would cause or contribute to such differences
include, but are not limited to, those factors detailed by Wavetech in its
filings with the Securities and Exchange Commission.
Contact: Bill Roberts, CTC Inc. 937-434-2700, for Wavetech
International, Inc.
SOURCE Wavetech International, Inc.
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Related links:
http://www.bestnetcall.com
Company News On-Call:
http://www.prnewswire.com/comp/122807.html or fax,
800-758-5804, ext. 122807
CONTACT:
Bill Roberts of CTC Inc., 937-434-2700, for
Wavetech International, Inc.
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