WILMINGTON, Del., Jan. 9, 2006 (PRIMEZONE) -- m-Wise, Inc. (OTCBB:MWIS), a leading technology provider of mobile content solutions for operators, ASPs and content providers, today announced that venture capital firm Syntek Capital, A.G. has entered into a termination and release agreement converting $1 million of debt to m-Wise common stock.
Under the terms of the agreement, m-Wise will issue a minimum of 5,561,994 shares of common stock in exchange for terminating m-Wise's 3.5 year-old debt to Syntek Capital. The conversion of this debt was for restricted shares at market value with no discount relative to the 30 days average trading price of the common stock.
Furthermore, m-Wise will issue Syntek a warrant of 5,263,158 shares of common stock at an exercise price of $0.19 per share, which can be exercised for up to a period of three years.
Shay Ben-Asulin, chairman of m-Wise said, "We are very happy that a strategic investor like Syntek Capital saw the opportunity in our current stock price and took a long-term position in m-Wise. The management of m-Wise believes that increasing our shareholder's equity, coupled with completing several business transactions shortly, will result in excellent return to Syntek and all our shareholders."
Ronni Benatoff, director of Syntek Capital said, "We are pleased to begin the New Year confirming our support to m-Wise. Syntek Capital has a strategy to investing only in companies with solid core and sustainable businesses. We have long recognized the potential of m-Wise's technology and believe in its future growth potential."
Full details of the transaction are available in Syntek Capital's 13D filing to the SEC.
About Syntek Capital
Syntek Capital is an investment holding company established to sustain and develop promising businesses where it can contribute true and tangible value-added support (in addition to mere financing) by leveraging industry expertise, exclusive networking capabilities and a clearly defined investment focus.
Syntek invests in high potential, growth and later-stage companies with existing substantial revenues and proven technologies in the Media, and Advanced Technology & Software sectors, as well as special situation investing.
About m-Wise
Founded in February 2000, m-Wise has rapidly established itself as a leading technology provider with the de facto Service Delivery Platform and related value-added data engines for Mobile Operators, Wireless ASPs, and large content and media providers.
Working closely with leading operators, ASPs and content providers, m-Wise is committed to take the lead and keep up to date with the latest industry headways in areas as diverse as content management and delivery, infotainment, mobile gaming and mobile community services. For more information, please visit www.m-wise.com.
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