a21
Completes $15.5
million Private Placement
Morgan
Stanley Invests $5 million
Jacksonville,
FL, -- May 1, 2006 - a21, Inc. ("a21") (OTCBB: ATWO),
a
leading online digital content marketplace for creative professionals, announced
today the completion of a private placement of $15.5 million of Secured
Convertible Notes (“Notes”) with institutional and accredited investors. The
Company expects to use the proceeds to repay existing debt, to provide working
capital, and for acquisitions and expansion.
The
Notes, due March 2011, bear interest at 5% per annum, and are convertible into
shares of the Company's common stock at $0.65 per share. In addition, if the
45
day volume weighted average price of the Company’s common stock equals or
exceeds $1 per share, the Notes will automatically be converted into a21’s
common stock under certain conditions. As part of the transaction, the Company
agreed to file a resale registration statement with the Securities and Exchange
Commission covering the common stock into which the Notes are convertible within
six months.
“We
are
pleased that this investor group recognizes the progress the Company has made
by
electing to complete this financing at a premium to the current market price
of
our common stock,” said Albert H. Pleus, Chairman and CEO of a21. “While about
50% of the Notes were purchased by our existing investors, we have also added
some very important new investors to the Company. The financing allows us to
improve our capital structure, retire certain outstanding warrants, strengthen
our balance sheet, and support the next phase of the Company’s growth.”
The
financing was led by StarVest Partners, L.P. and QueeQueg Partners, L.P. which
purchased an aggregate of $5 million of the Notes. Morgan Stanley (NYSE: MS)
also invested $5 million. Laura B. Sachar, founding partner of StarVest will
be
nominated for a seat on a21’s Board of Directors at its next annual meeting of
stockholders. The Company currently has four outside directors out of eight
total directors.
“I
am
excited about the prospects of a21,” said Ms. Sachar. “We believe in a21’s
business plan and look forward to assisting them in achieving their
objectives.”
About
a21
a21
(www.a21group.com)
is a
leading online digital content marketplace for the professional creative
community. Through SuperStock (www.superstock.com;
www.superstock.co.uk
and
www.purestockx.com)
and
Ingram Publishing (www.ingrampublishing.com),
its
most recent acquisition, a21 delivers high quality images and exceptional
customer service. a21 and its companies, with offices in New York, Florida,
and
the United Kingdom, provide a whole new level of image access to photographers,
artists, photography agencies and other customers, offering a valuable and
viable choice in the stock image industry.
About
StarVest Partners, L.P.
StarVest
Partners, L.P. (www.starvestpartners.com)
is a
$150 million New York-based venture capital fund dedicated to working with
outstanding entrepreneurs to build world-class software, e-commerce and business
services companies. StarVest provides significant resources with
managerial, financial and technical expertise as well as extensive Fortune
1000
contacts. Limited partners include institutional partners, international
institutions and entrepreneurs. StarVest's portfolio includes NetSuite,
Comparison Market, Newgistics and iCrossing among others.
The
statements contained in this press release contain certain forward-looking
statements, including statements regarding a21, Inc.’s expectations, intentions,
strategies and beliefs regarding the future. All statements contained herein
are
based upon information available to a21, Inc.’s management as of the date hereof
and actual results may vary based upon future events, both within and without
the control of a21, Inc.’s management.
|
Investor
Relations Contact
Dennis
Early
CEOcast
212.732.4300
dearly@ceocast.com
|