SOUTH PLAINFIELD, N.J., May 14, 2004 (PRIMEZONE) -- Vertex Interactive, Inc. (OTCBB:VETX), a provider of software technology for warehouse management and product execution, today announced that it had entered into an agreement with the NIR Group, through its Family of Funds, pursuant to which the Funds will provide to Vertex up to $3 million principal amount in connection with the sale of 10% Senior Secured Convertible Redeemable Notes.
The Funds also will receive one Warrant for every dollar invested.
The company has received gross proceeds of $1,500,000 under this facility and will receive a further $750,000 of additional gross proceeds upon the filing of a registration statement covering the common stock underlying the Notes and Warrants; and an additional $750,000 upon effectiveness of such registration statement.
The company was represented by Sichenzia Ross Friedman Ference LLP in this transaction.
Corey Ribotsky, Managing Member of the NIR Group, stated, "We are excited about the opportunity to establish a long-term relationship with a software technology company in the market space that Vertex has identified. We believe in the quality of the management team and the business plan that they have adopted, which focuses on order fulfillment and inventory control."
Hugo Biermann, Executive Chairman, stated, "This funding represents a major development for Vertex, in that the company has established a relationship with an institutional investor that has the ability to assist us in reaching our capital funding requirements on a long-term basis. The funding is both timely and closely aligned with the business needs of the company."
About Vertex Interactive
Vertex Interactive is an international provider of supply chain management technologies. Vertex offers a comprehensive range of software systems and tools, from point solutions, to integrated end-to-end hardware and software solutions, for enterprise wide and collaborative supply chain optimization.
Safe Harbor
Certain statements contained herein may be forward-looking in nature and are therefore subject to risks and uncertainties that could cause actual results to differ materially. The company's recent acquisition history, progress toward completing the integration of its acquisitions, history of operating losses, current expense levels compared with its sales, and the state of development of its product portfolio, coupled with the overall economic and competitive operating environments pose a number of risks investors should take into consideration in connection with assessing our financial and operating results. A more detailed discussion of these and other important risk factors can be found in the documents filed with the Securities and Exchange Commission on forms 10-K and 10-Q. Towards the end of each fiscal quarter, Vertex Interactive will have a 'Quiet Period' when Vertex Interactive and its representatives will not comment concerning previously published financial expectations, and we disclaim any obligation to update during the Quiet Period. The public should not rely on previously published expectations during the Quiet Period. Investors should not expect that these forward-looking statements will be updated or supplemented as a result of changing circumstances or otherwise, and Vertex Interactive disavows and disclaims any obligation to do so.
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