MIAMI, Nov. 16, 2001 (PRIMEZONE) -- E-Rex, Inc. (OTCBB:EREX) announced today that the Securities and Exchange Commission is presently reviewing its re-filed SB-2 registration statement. Once effective, the Company will have access of up to $15 million in additional funding through an agreement with Swartz Private Equity.
"This new funding arrangement will help E-Rex to continue on its plans for growth over the next three years," said Don Mitchell, the company's Chairman.
E-Rex's investment agreement allows the Company to raise up to $15 million through a series of sales of its common stock, subject to registration and certain other conditions, and limited to a percentage of dollar trading volume. Each sale will be to the institutional private equity investor. In turn, the investor can hold the stock in their portfolio, sell the stock in the open market, or place the stock through negotiated transactions with other investors. Under the agreement, the investor is not permitted to short the Company's stock.
Based on the availability of these funds, the new capital will be used for the completion of the Dragonfly prototype, marketing costs, research and development and other working capital requirements of the Company. The first significant tranche of capital from this arrangement will permit the company to put into motion its previously announced plans regarding product development, marketing and additions to management.
"We expect to begin showing the new prototype of the 'Dragonfly' to potential manufacturing and marketing partners sometime during Q1 2002," said Carl Dilley, E-Rex President.
For complete details on this filing please visit www.sec.gov.
About E-Rex, Inc.
Headquartered in Miami, E-Rex, Inc. is a technology company dedicated to designing and the future production of stand-alone peripherals and direct Internet-access products, both cellular and satellite. The Company's flagship product, the "Dragonfly," is a portable, multi-function, color printer, copier, fax, e-mail, scanner and wireless Internet device. This online service is the heart of the new generation of mobile office appliances that can perform a great variety of functions in conjunction with Web-based database services. The "Dragonfly" Internet host site will have the ability to provide a variety of online services to the Dragonfly user base.
This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities and Exchange Act of 1934 and is subject to the safe harbor created by these sections. E-Rex, Inc. assumes no obligation to update the information contained in this press release. Certain information included herein may contain statements that are forward-looking, such as statements relating to plans for future expansion and other business development activities as well as operating costs, capital spending, financial sources and the effects of competition. Such forward-looking information is subject to changes and variations which are not reasonably predictable and which could significantly affect future results. Accordingly, such results may differ from those expressed in any forward-looking statements made by, or on behalf of, the Company.