NEW YORK July 14, 2011
Under the terms of the signed agreement, for a period of 36 months the Company has the option to sell and Dutchess the obligation to purchase common stock at a 6% discount to a calculated volume weighted average market price. In connection with establishing the equity line, the Company has agreed to file a registration statement with the U.S. Securities and Exchange Commission to register the resale by Dutchess of any shares issued to it under the equity line. Subject to the effectiveness of the registration statement and the satisfaction of other customary conditions, the Company may draw on the finance facility on a needed basis.
Michael Braunold, President and Chief Executive Officer of SPO commented, "We are pleased to enter into this financing agreement offering SPO a flexible infusion of cash with a well-established firm such as Dutchess. It is one of several financing strategies that will be pursued as we launch our innovative wellness products into the consumer mass-market environment. Dutchess has the track record and experience in the industry and has been a leader in providing equity lines for over 10 years which contributed significantly to selecting them as our partner."
SPO is developing a series of consumer wellness devices that includes the world’s first performance monitoring wristband, known as the Wellness 10k™, designed for both children and adults and featuring a display function to continuously measure the number of daily activities against preset recommended goals. A heart-rate monitor sports watch has also been developed to measure continuous heart-rate without the need to wear a conventional chest strap, unlike many other heart-rate monitor watches that are on the market.
Both SPO products are currently at an advanced stage of development and SPO expects the Wellness 10k™ wristband to be launched later this year following a recent successful test marketing program. Braunold continued; "Securing this equity line with Dutchess is an important milestone for the Company and its shareholders; we can now focus on bringing our wellness product line to the consumer market."
A more detailed description of the Dutchess agreement is set forth in the Company’s Form 8k recently filed with the SEC.
$200 million North America Europe Asia $1.8 billion
Forward Looking Statements
This press release contains forward-looking statements that involve substantial uncertainties and risks. These forward-looking statements are based upon our current expectations, estimates and projections about our business and our industry, and that reflect our beliefs and assumptions based upon information available to us at the date of this release. We caution readers that forward looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including but not limited to, market acceptance of our products and new product applications, timing of new product launches, success of the Company ‘ s rebranding program, product performance, size of prospective markets, success of our restructured operations and plans, our ability to generate fees or raise capital to support our business operations and plan, the sufficiency and availability of working capital, changes in economic conditions generally and in more specifically, the introduction of competing products, changes in our operating strategy or development plans patent protection for our products and technologies, changes in economic conditions generally and in more specifically, in the markets we operate, changes in technology, legislative or regulatory changes that affect us and the risks and uncertainties discussed under the heading "Risk Factors" in Item 1 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2010 . We undertake no obligation to revise or update any forward-looking statement for any reason.
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SOURCE SPO Global