ROCHESTER, N.Y., June 21, 2004 (PRIMEZONE) -- Total Identity Corp. ("TIC") (OTCBB:TIDC) announced today that it has converted over $90,000 more of debt into equity bringing the total converted to just under $300,000 from the previously announced $200,000. The equity will be a newly created non convertible Preferred Stock with a detachable warrant to purchase two shares of Common Stock at $.50 each. The Company is also filing a registration statement to register the shares underlying the options received as part of the conversion, from which the Company will receive an additional $300,000 once the registration becomes effective.
The new Series of Preferred will be purchased at $1.00 per share and have a detachable warrant for two options of the company's Common Stock exercisable at $.50 per share. The new Series is not convertible into Common Stock and carries a coupon rate of 12%. The interest shall accrue and be paid quarterly in either cash or additional shares of Preferred. The Preferred also has voting rights equal to one vote per share of Preferred owned. The Company will also have the right to purchase the shares back at the same price as they were sold with accrued interest.
The infusion of cash from the options being exercised will enable Total Identity Group ("TIG"), TIC's wholly owned subsidiary, to pay down its payables and begin receiving vendor discounts it is not currently receiving. With the conversion of TIC debt being recorded in the second quarter and the infusion of additional capital TIC will have positive shareholder equity that would enable TIG to become bondable again. With bonding TIG can begin bidding on work that it has been unable to for the past two years. The Company has historically bid on $20 to $25 million dollars worth of business a year which has resulted in $2-$2.5 million in sales. The additional revenues would also produce approximately $400,000 in additional net income.
TIC sales which had been reported as a 15% increase for the first two months has grown to 18% for the first 4 months over last year. The backlog of sales for January/February of 2004 reported as $2.8 million or a 15 percent increase has grown to over $3.5 million for the first 4 months a 24% increase from the same period in 2003. This is a reflection of the improvement in the manufacturing sector as well as improved sales and marketing within TIC.
Matthew P. Dwyer, President of TIC, stated "TIC will use the cash to pay down debt at the plant and shore up the balance sheet to help the company receive discounts and qualify for bonding. With the addition of bonding the company can continue with its internal growth and meet and possibly exceed sales and earnings expectations."
About TIC
TIC is developing opportunities within the $13 billion signage industry with the goal of becoming the place for corporate America to go for their custom sign needs. TIC initial plans are to acquire various plants located on the Eastern seaboard, giving TIC a strong presence along the East Coast through the Midwest. TIC is looking at various sign companies that will enable TIC to absorb their operations within its existing plant which has the capacity to generate $40 million a year in revenues by adding additional shifts.
Certain information contained in this news release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. While these statements are made to convey the company's progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management's opinion. Actual company results may differ materially from those described. The company's operations and business prospects are always subject to risk and uncertainties. A more extensive listing of risks and factors that may affect the business prospects of the company and cause actual results to differ materially from those described in the forward-looking statements can be found in the reports and other documents filed by the company with the Securities and Exchange Commission.