CHARLTON, Mass., Aug. 22 /PRNewswire/ -- FiberCore, Inc. (Nasdaq: FBCE), a
leading manufacturer and global supplier of optical fiber and preform for the
telecommunications and data communications markets, today announced that it
replaced an existing $19 million equity line of credit and received proceeds
of $3 million upon the private placement of common stock to Crescent
International Ltd. The purchase price was at a premium over the closing price
of FiberCore's common stock on August 20, when FiberCore and Crescent entered
into a new stock purchase agreement.
The new agreement replaces FiberCore's existing agreement with Crescent,
which was a $30 million equity line. $11 million of the line was drawn in
2000 for the purchase of Xtal FiberCore Brasil, S.A. With the recent $3
million draw down, the equity line has now been reduced to $16 million. The
new agreement contains several positive features, including a pricing
mechanism more advantageous to FiberCore. The proceeds from the current sale
and future sales to Crescent will be used to fund capacity expansion and for
other corporate purposes.
Dr. Mohd Aslami, President and CEO of FiberCore commented, "The new
arrangement provides FiberCore with more favorable pricing, greater
flexibility, and extends the original commitment period. We enjoy a strong
relationship with Crescent and welcome their continued support."
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, 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.
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Related links:
http://www.FiberCoreUSA.com
CONTACT:
Dr. Mohd A. Aslami, President-CEO, or Robert
Lobban, CFO, of FiberCore, Inc., +1-508-248-3900; General Info.,
Alison Ziegler, or Analysts, Peter Seltzberg, of The Financial
Relations Board BSMG, +1-212-445-8400
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