Prescient Applied Intelligence Receives $2.25 Million Investment to Support Organic and Strategic Growth
Prescient Applied Intelligence Receives $2.25 Million Investment to
Support Organic and Strategic Growth
West Chester, PA – May 4, 2005 – Prescient Applied Intelligence, Inc. (OTCBB:
PPID), a leading provider of supply chain and advanced commerce solutions for
retailers and suppliers, announced today it has entered into a definitive
agreement with Tak Investments, LLC, raising gross proceeds of $2.25 million.
Under the terms of the agreement, Tak Investments is investing $2.25 million in
the company`s common stock at a purchase price of $0.44 per share. Tak
Investments also will receive 1.5 million common stock purchase warrants
exercisable at $1.00 per share. Tak Investments has agreed to a twelve-month
lockup
in connection with the shares issued.
Concurrently with the completion of this financing, all of Prescient’s outstanding
Series F preferred shares convert into an additional 3.4 million shares of common
stock and 240 shares of Series G preferred stock (for those Series F holders
whose ownership would exceed 9.99% of common shares outstanding upon
completion of these transactions). The former holders of the Series F preferred
stock will also receive 2.6 million common stock purchase warrants exercisable at
$1.00 per share.
Under the terms of the agreement, Tak Investments will have the right to
designate one person to be nominated for election to the Prescient board of
directors following the next annual meeting of Prescient’s stockholders. In
addition, Prescient will enter into a fiveyear
Remote Resourcing Agreement with
Healthcare BPO Partners L.P., an entity also owned by Mr. Tak, which provides
for the outsourcing of data center and other related services.
In commenting on the investment, Jane Hoffer, the President and Chief Executive
Officer of Prescient, said, "We are extremely pleased that Tak Investments shares
our strategic vision and plans for growth and profitability, and that Mr. Tak, as
President of ECom
Systems, a leading provider of EDI solutions for retailers and
their trading partners, is well versed in the potential for Prescient’s advanced
commerce and supply chain offerings. This investment places Prescient on sound
financial footing, simplifies our capital structure, and positions Prescient to take
advantage of strategic growth opportunities as they arise.”
Hoffer went on to say, “Our technology solutions and services align processes to
focus on consumer demand through the exchange of information and collaboration
between trading partners. Retailers share transaction data – what consumers are
buying, and the velocity at which they are buying them; in turn, this data is used
by suppliers to develop more accurate forecasts, driving better distribution and
manufacturing planning. We have a clearly defined set of practical, proven
solutions and services that deliver results to both retailers and suppliers, but the
ultimate winner is the consumer.”
Commenting on the investment in Prescient, Sharad Tak said, "I believe
Prescient is well positioned to take advantage of the business issues and trends
that are driving the retail industry today. The company has strong customer
references, extensive industry expertise, and an experienced management team,
all of which provide a solid foundation for growth. I look forward to working
closely with Prescient."
For complete details related to the common stock purchase agreement, the
common stock purchase warrants, the Series F conversion, the Series G
preferred stock, the lockup
agreement, and the Remote Resourcing Agreement,
please refer to the company’s Form 8K
filed by the company with the SEC.
Burnham Hill Partners, a division of Pali Capital, Inc. acted as the placement
agent and financial advisor for the transactions discussed above.
About Prescient Applied Intelligence, Inc.
Prescient Applied Intelligence, Inc. enables retail trading partners to align planning
and execution with changing market needs to maximize relationships and deliver
on the promise of collaborative commerce. The company’s retailercentric
and
collaborative commerce solutions are designed with the understanding that
product demand and business processes are fluid. Prescient’s solutions capture
information at the point of sale, provide greater visibility into realtime
demand,
and turn data into actionable information across the entire supply chain. As a
result, the company’s products and services enable trading partners to compete
effectively, increase profitability, and excel in today’s retail business climate.
Household brand names like Ahold, AutoZone, Coors, Domino’s Pizza, Rite Aid,
Sara Lee and Schwan’s rely on Prescient. For more information, go to
www.prescient.com.
Forwardlooking
Statement
Any statements contained in this document that are not historical facts are
forwardlooking
statements as defined in the U.S. Private Securities Litigation
Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,”
“forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and
similar expressions as they relate to Prescient Applied Intelligence, Inc. are
intended to identify such forwardlooking
statements. Prescient may from time to
time update these publicly announced projections, but it is not obligated to do
so. Any projections of future results of operations should not be construed in any
manner as a guarantee that such results will in fact occur. These projections are
subject to change and could differ materially from final reported results. For a
discussion of such risks and uncertainties, see "Risk Factors" in Prescient’s report
on Form 10KSB
filed with the Securities and Exchange Commission and its other
filings under the Securities Exchange Act of 1934, as amended. Readers are
cautioned not to place undue reliance on these forwardlooking
statements,
which speak only as of the dates on which they are made.
Stan Szczygiel
CFO, Prescient
6107191600
x360
sszczygiel@prescient.com
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