VANCOUVER, British Columbia, May 23, 2003 (PRIMEZONE) -- Stockgroup Information Systems Inc., (OTCBB:SWEB) (TSX Venture Exchange:SWB) a financial media and technology company is pleased to announce that Deephavan Capital has converted into common shares and sold, with the exception of a balance of 700,000 shares which it has retained for investment purposes, the remaining balance of its US$1.23 million convertible note held in the Company. The debt was converted into stock at US$0.28/share and has eliminated all of the Company's long-term debt. The shares were sold primarily to an institutional group including US Global Funds. (www.usfunds.com).
"This significantly changes the enterprise value of the company and allows us to obtain new customers and overcome previous obstacles in contracting some new business," said Marcus New, CEO of Stockgroup. "Potential clients and investors now have the confidence knowing Stockgroup's balance sheet has been substantially improved and any risk associated with the debt has been eliminated."
Stockgroup also previously announced it entered into a distribution agreement with AP Digital a division of The Associated Press. As a result of this relationship, Stockgroup and The Associated Press announced two new significant clients including Roadrunner, a subsidiary of AOL Time Warner.
Last quarter, Stockgroup achieved sequential and year over year revenue growth and continues to sign agreements with some of North America's largest companies. Stockgroup is now licensing products to industry leaders, including: Microsoft, Union Bank of California, DuPont, Mellon Financial Services, Citi Group, Intrawest, National Bank Financial and many more.
These companies are proving to be an increasingly significant source of recurring monthly revenue for the company. Over two hundred corporations in Canada and the United States are now licensing or using Stockgroup products under annual or multi year contractual agreements.
About Stockgroup
Stockgroup Information Systems Inc. is a financial media and technology company. It is a leading provider of private labeled financial software and content solutions to media, corporate and financial services companies. Stockgroup employs proprietary technologies which enable its clients to provide financial data streams and news combined with cutting-edge fundamental, technical, productivity and disclosure tools to their customers, shareholders and employees at a fraction of the cost of traditional internal methods. Stockgroup is also a provider of Public Company Disclosure and Awareness Products for publicly traded companies. Its financial web sites, including www.stockhouse.com, www.stockhouse.ca and www.smallcapcenter.com, are state-of-the-art online research centers for the investment community. To find out more about Stockgroup (OTCBB:SWEB) (TSX Venture Exchange:SWB), visit our website at www.stockgroup.com.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward-looking statements in this action may be identified through the use of words such as "expects," "will," "anticipates," "estimates," "believes," or statements indicating certain actions "may," "could," or "might" occur.
This release has neither been approved or disapproved by the TSX.