EX-99.1
16
ex991.htm
EX 99.1
Unassociated Document
NewMarket
Technology,
Inc.
Contact:
Investor Relations
Tel:
214-722-3065
Email:
ir@newmarkettechnology.com
Press
Release
NewMarket
Technology, Inc. Completes $7 Million Financing Transaction with Institutional
Investment Firm to Support New Organic Growth Initiatives
NewMarket
Founders Forgive Approximately $4.3 Million in Debt and Accrued Interest Due
to
Founders from Company
DALLAS,
TX - December 6, 2007 - NewMarket Technology, Inc. (OTCBB:
NMKT
) today
announced completing a $7 million financing transaction with an institutional
investment firm which manages a portfolio valued at over $1
billion.
$3
M Credit Facility and $4 M Term Note Secured by Company
Assets
The
financing transaction consists of a $3 million revolving credit facility secured
by the company's domestic accounts receivable and a $4 million convertible term
loan collateralized by the assets of the Company. The rate of
conversion is at a fixed price set at the time of closing. The $4
million term loan would only convert debt into stock at a fixed price if
principle payments and interest fees were not otherwise paid in
cash. As part of the $7 million financing transaction, the Company
also issued warrants to purchase 12 million shares of the Company's common stock
at a premium to the share price at the time the financing transaction was
closed. The potential exercise of the warrants could result in an
additional equity investment in NewMarket of approximately $2.7
million. The company's primary intended purpose of the financing
transaction is to support aggressive organic sales expansion in North
America.
$4.3
M in Existing Debt Forgiven In Conjunction with $7 Million in New
Financing
In
conjunction with the financial transaction, the NewMarket founders (aka
Vergetech and VTI) have agreed to forgive approximately $4.3 million in debt
and
accrued interest due to the founders from NewMarket. This debt
reduction eliminates any further expense and profit burden previously required
to service the debt. This debt reduction also eliminates the
potential of any further stock being issued to service this debt. The
Company has not provided any additional or special consideration to the founders
in conjunction with the debt forgiveness.
1
NewMarket
CFO Phil Rauch Highlights Fundamental Financial Foundation
"This
$7
million institutional financing agreement is better than most financing
arrangements I have observed as being available to OTCBB listed
companies. The conversion price of the term note is fixed and
the warrant price was set at a premium to the share price at the time of
closing. In other words, it is in the institutional investment firm's best
interest for the NewMarket share price to increase and for NewMarket's
operations to continue growing. The quality of this financing
agreement highlights the improving strength of NewMarket's fundamental financial
foundation which is further improved by the founders' agreement to forgive
approximately $4.3 million in debt. I know the founders consider the
debt forgiveness agreement as an investment in the future value of their own
holdings in NewMarket. Nevertheless, I want to extend my thanks to
the founders for their ongoing and long-term commitment to the Company's
continuing success".
To
be
added to NewMarket Technology's e-mail database for shareholders and interested
investors, please send an e-mail to
ir@newmarkettechnology.com
.
About
NewMarket Technology, Inc.
(
www.newmarkettechnology.com
)
NewMarket
helps clients maintain the delicate balance between maintaining legacy systems
and gaining a competitive edge from the latest technology innovations. NewMarket
provides certified integration and maintenance services to support the
prevailing industry standard solutions such as Microsoft, Cisco Systems, SAP,
Siebel and Sun Microsystems. Concurrently, NewMarket continuously seeks to
acquire emerging technology assets to incorporate into an overall product
portfolio carefully packaged to complement the prevailing industry standard
solutions.
NewMarket
delivers its portfolio of products and services through its network of Solution
Integration subsidiaries in North America and the leading emerging markets
around the world to include, Latin America, China and Singapore.
NewMarket
ranked Number One in Texas, Number Three in the United States and Number Five
in
North America on Deloitte's 2006 Technology Fast 500, a ranking of
the 500 fastest growing technology, media, telecommunications and life sciences
companies in North America. Rankings are based on percentage revenue growth
over
five years, from 2001-2005. The Company grew from less than $1 million in
revenue in 2001 to over $50 million in profitable revenue in 2005. In 2006,
the
company continued its rapid growth, reporting $77.6 million in revenue with
a
net income of $5.8 million.
"SAFE
HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995
2
This
press release contains forward-looking statements that involve risks and
uncertainties. The statements in this release are forward-looking statements
that are made pursuant to safe harbor provision of the Private Securities
Litigation Reform Act of 1995. Actual results, events and performance could
vary
materially from those contemplated by these forward-looking statements. These
statements involve known and unknown risks and uncertainties, which may cause
NewMarket's actual results in future periods to differ materially from results
expressed or implied by forward-looking statements. These risks and
uncertainties include, among other things, product demand and market
competition. You should independently investigate and fully understand all
risks
before making investment decisions.
Contact:
NewMarket
Technology, Inc.
Investor
Relations, 214-722-3065
ir@newmarkettechnology.com
www.newmarkettechnology.com
3

EX - 99 . 1 16 ex991 . htm EX 99 . 1 Un associated Document NewMarket Technology , Inc . Contact : Investor Relations Tel : 214 - 722 - 3065 Email : ir@newmarkettechnology.com Press Release NewMarket Technology , Inc . Completes $ 7 Million Financing Transaction with Institutional Investment Firm to Support New Organic Growth Initiatives NewMarket Founders Forgive Approximately $ 4.3 Million in Debt and Accrued Interest Due to Founders from Company DALLAS , TX - December 6 , 2007 - NewMarket Technology , Inc . ( OTCBB : NMKT ) today announced completing a $ 7 million financing transaction with an institutional investment firm which manages a portfolio valued at over $ 1 billion . $ 3 M Credit Facility and $ 4 M Term Note Secured by Company Assets The financing transaction consists of a $ 3 million revolving credit facility secured by the company 's domestic accounts receivable and a $ 4 million convertible term loan collateralized by the assets of the Company . The rate of conversion is at a fixed price set at the time of closing . The $ 4 million term loan would only convert debt into stock at a fixed price if principle payments and interest fees were not otherwise paid in cash . As part of the $ 7 million financing transaction , the Company also issued warrants to purchase 12 million shares of the Company 's common stock at a premium to the share price at the time the financing transaction was closed . The potential exercise of the warrants could result in an additional equity investment in NewMarket of approximately $ 2.7 million . The company ' s primary intended purpose of the financing transaction is to support aggressive organic sales expansion in North America . $ 4.3 M in Existing Debt Forgiven In Conjunction with $ 7 Million in New Financing In conjunction with the financial transaction , the NewMarket founders ( aka Vergetech and VTI ) have agreed to forgive approximately $ 4.3 million in debt and accrued interest due to the founders from NewMarket . This debt reduction eliminates any further expense and profit burden previously required to service the debt . This debt reduction also eliminates the potential of any further stock being issued to service this debt . The Company has not provided any additional or special consideration to the founders in conjunction with the debt forgiveness . 1 NewMarket CFO Phil Rauch Highlights Fundamental Financial Foundation " This $ 7 million institutional financing agreement is better than most financing arrangements I have observed as being available to OTCBB listed companies . The conversion price of the term note is fixed and the warrant price was set at a premium to the share price at the time of closing . In other words , it is in the institutional investment firm ' s best interest for the NewMarket share price to increase and for NewMarket 's operations to continue growing . The quality of this financing agreement highlights the improving strength of NewMarket 's fundamental financial foundation which is further improved by the founders ' agreement to forgive approximately $ 4.3 million in debt . I know the founders consider the debt forgiveness agreement as an investment in the future value of their own holdings in NewMarket . Nevertheless , I want to extend my thanks to the founders for their ongoing and long - term commitment to the Company 's continuing success " . To be added to NewMarket Technology 's e - mail database for shareholders and interested investors , please send an e - mail to ir@newmarkettechnology.com . About NewMarket Technology , Inc . ( www.newmarkettechnology.com ) NewMarket helps clients maintain the delicate balance between maintaining legacy systems and gaining a competitive edge from the latest technology innovations . NewMarket provides certified integration and maintenance services to support the prevailing industry standard solutions such as Microsoft , Cisco Systems , SAP , Siebel and Sun Microsystems . Concurrently , NewMarket continuously seeks to acquire emerging technology assets to incorporate into an overall product portfolio carefully packaged to complement the prevailing industry standard solutions . NewMarket delivers its portfolio of products and services through its network of Solution Integration subsidiaries in North America and the leading emerging markets around the world to include , Latin America , China and Singapore . NewMarket ranked Number One in Texas , Number Three in the United States and Number Five in North America on Deloitte 's 2006 Technology Fast 500 , a ranking of the 500 fastest growing technology , media , telecommunications and life sciences companies in North America . Rankings are based on percentage revenue growth over five years , from 2001 - 2005 . The Company grew from less than $ 1 million in revenue in 2001 to over $ 50 million in profitable revenue in 2005 . In 2006 , the company continued its rapid growth , reporting $ 77.6 million in revenue with a net income of $ 5.8 million . " SAFE HARBOR STATEMENT " UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 2 This press release contains forward - looking statements that involve risks and uncertainties . The statements in this release are forward - looking statements that are made pursuant to safe harbor provision of the Private Securities Litigation Reform Act of 1995 . Actual results , events and performance could vary materially from those contemplated by these forward - looking statements . These statements involve known and unknown risks and uncertainties , which may cause NewMarket 's actual results in future periods to differ materially from results expressed or implied by forward - looking statements . These risks and uncertainties include , among other things , product demand and market competition . You should independently investigate and fully understand all risks before making investment decisions . Contact : NewMarket Technology , Inc . Investor Relations , 214 - 722 - 3065 ir@newmarkettechnology.com www.newmarkettechnology.com 3