XFONE FINALIZES AGREEMENT
FOR NEW EQUITY FINANCING
January 13, 2004
CARSON CITY, Nev. & LONDON--(BUSINESS WIRE)--Jan. 13, 2004--xfone, Inc., an international telecommunication services provider, announced today that it has entered into an agreement with a group of institutional investors to provide up to $2 million U.S. dollars of new equity financing through the sale of the Company’s common stock and warrants if exercised.
Under the terms of the agreement, the group will purchase 166,667 shares of common stock for $500,000. In addition, investors will receive an ‘A’ and ‘B’ warrant for each share of common stock purchased. The ‘A’ warrant is exercisable at $5.50 per share for five-years from the issue date. The ‘B’ warrant is exercisable at $3.50 per share and it will expire on the earlier of (a) 10 days after the Company is approved for listing on NASDAQ Small Cap or the American Stock Exchange, or 10 days following the effective date of the Company’s registration statement; or (b) 375 days following the issue date of the warrant; or (c) the merger or consolidation of the Company. The Company will use the proceeds of this financing as additional working capital and for business development.
Guy Nissenson, CEO of xfone, stated, “The Company has a track record of rapid growth and a positive cash flow from operations and has targeted these funds for working capital and business development.”
About XFONE, Inc.
A U.S.-domiciled corporation, XFONE, Inc. is an international voice, video and data communications services provider with operations in the United Kingdom, the United States and Israel that offers a wide range of services, which include: local, long distance and international telephony services; prepaid and postpaid calling cards; cellular services; Internet services; messaging services (Email/Fax Broadcast, Email2Fax and Cyber-Number); and reselling opportunities. The Company serves customers across Europe, Asia, North, Central and South America, Australia and Africa.
This press release contains forward-looking statements.
The words or phrases "should," "would
be," "will allow," "intends to,"
"will likely result," "are expected to,"
"will continue," "is anticipated,"
"estimate," "project," or similar
expressions are intended to identify "forward-looking
statements." The Company's financial results reflected
above should not be construed by any means as representative
of the current or future value of its common stock.
All information set forth in this press release, except
historical and factual information, represents forward-looking
statements. This includes all statements about the company's
plans, beliefs, estimates and expectations. These statements
are based on current estimates and projections, which
involve certain risks and uncertainties that could cause
actual results to differ materially from those in the
forward-looking statements. These risks and uncertainties
include issues related to rapidly changing technology
and evolving standards in the industries in which the
Company and its subsidiaries operate; the ability to
obtain sufficient funding to continue operations, maintain
adequate cash flow, profitably exploit new business,
and license and sign new agreements; the unpredictable
nature of consumer preferences; and other factors set
forth in the Company's most recently filed annual report
and registration statement. Readers are cautioned not
to place undue reliance on these forward-looking statements,
which reflect management's analysis only as of the date
hereof. The Company undertakes no obligation to publicly
revise these forward-looking statements to reflect events
or circumstances that arise after the date hereof. Readers
should carefully review the risks and uncertainties
described in other documents that the Company files
from time to time with the Securities and Exchange Commission.
| For More Information, Please Contact: |
 |
| U.S.
IR Contact |
John Nesbett/Jennifer Beloeau
Institutional Marketing Services (IMS)
Phone: 1.203.972.9200.
E-mail: jnesbett@institutionalms.com |
|
| Xfone Contact |
|
Niv Krikov
Chief Financial Officer
Phone: + 972.39254446 (Israel)
E-mail: E-mail: niv@xfone.com |
|
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