SteelCloud Raises $7.16 Million in Private Placement of Common Stock
28 October 2003 - 6:28AM
PR Newswire (US)
SteelCloud Raises $7.16 Million in Private Placement of Common
Stock DULLES, Va., Oct. 27 /PRNewswire-FirstCall/ -- SteelCloud
Inc. , a leading supplier of antivirus and intrusion detection
security products, today announced that on October 24, 2003 it
completed a private placement of common stock, raising $7,161,025
million in net proceeds from 17 institutional and private
investors. Although the transaction was over-subscribed, SteelCloud
chose to only raise the capital appropriate to fund its business
plan. The company sold 1,887,500 newly issued shares of SteelCloud
common stock at a price of $4.00 per share. Additionally, warrants
to purchase an aggregate of 471,875 shares of common stock at an
exercise price of $5.8125 were issued to investors in connection
with the transaction. "This transaction strengthens our
institutional shareholder base and is a strong endorsement by a
group of knowledgeable investors," said Thomas P. Dunne, SteelCloud
Chairman and CEO. "SteelCloud now has the financial base to fully
execute our business plan and proceed with strategic initiatives in
the rapidly growing network security market space. We're excited
about attracting new institutional investors and deepening our
relationships with the investment community." This announcement
does not constitute an offer to sell or a solicitation of an offer
to buy shares of SteelCloud's common stock. These shares have not
been registered under the Securities Act of 1933 or applicable
state securities laws and may not be offered or sold in the United
States or any state thereof absent registration under the
Securities Act and applicable state securities laws or an
applicable exemption from the registration requirements of the
Securities Act and applicable state securities laws. This press
release is being issued pursuant to and in accordance with Rule
135c under the Securities Act. SteelCloud has agreed to file a
registration statement covering the resale of the shares of Common
Stock subject to this offering. About SteelCloud SteelCloud is a
leading provider of network security appliances and consulting
solutions. The company develops security solutions with some of the
world's premiere software and technology companies. With a 16-year
history of delivering complex server solutions to major corporate
and public sector enterprises, the company has won numerous awards
for technical excellence and customer services. SteelCloud's
comprehensive engineering, product development, and support
infrastructure provides a unique capability for rapidly developing
cost effective, high performance, hardened network appliances.
SteelCloud can be reached at 703-450-0400. Additional information
is available at http://www.steelcloud.com/. Email: . "Safe Harbor"
statement under the Private Securities Litigation Reform Act of
1995: Except for historical information, all of the statements,
expectations and assumptions contained in the foregoing are forward
looking statements that involve a number of risks and
uncertainties. It is possible that the assumptions made by
management are not necessarily the most likely and may not
materialize. In addition, other important factors that could cause
actual results to differ materially include the following: business
conditions and the amount of growth in the computer industry and
general economy; competitive factors; ability to attract and retain
personnel, including key sales and management personnel; the price
of the Company's stock; and the risk factors set forth from time to
time in the Company's SEC reports, including but not limited to its
annual report on Form 10-K and its quarterly reports on Forms 10-Q;
and any reports on Form 8K. SteelCloud takes no obligation to
update or correct forward-looking statements. DATASOURCE:
SteelCloud Inc. CONTACT: Brian Hajost of SteelCloud Inc.,
+1-703-450-0400, ext. 5240 Web site: http://www.steelcloud.com/
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