BOCA RATON, Fla., April 13, 2005 (PRIMEZONE) -- DirectView, Inc. (OTCBB:DRVW) has announced that they have entered into a definitive agreement with Highgate House, a private equity fund, to sell $1,000,000.00 of the Company's 7% Secured Convertible Debentures due April 1, 2006. The Debentures are convertible into DirectView common stock at a fixed floor price of no less than $.024 per share. The Company will receive the funds in two tranches, the first $500,000 has just been received and the second $500,000 will be received upon the filing of a registration statement to register the common stock underlying the Debentures which are due April 1, 2006.
DirectView plans to use the funds to accelerate its business expansion in its core videoconferencing solutions as well as to complete other projects, including the design and launch of its previously announced Digital IP Video Phone based on its proprietary technology.
Commenting on the transaction, Jeffrey Robbins, President of DirectView, stated, "During the third quarter of 2004, the Company opened the Texas office and expanded its full time sales force with additional industry savvy staff; increasing number of full time sales personnel sets the stage for the Company to rapidly grow its pipeline of orders for 2005. We also entered into the final phase of testing and development of our Video IP Telephone, which we expect to launch shortly. This cash infusion goes a long way in helping us finance our plans for 2005 and beyond."
Adam S. Gottbetter, New York based Portfolio Manager of Highgate House, said, "We are pleased to provide the capital to help DirectView further its business plan."
In addition to this financing, the Company maintains freely tradable shares of Langley Park Investments, which trades on the London Stock Exchange and which will be used for growth and expansion. The Company has also entered into a separate standby credit facility to provide an additional $10,000,000 in financing based upon certain terms and conditions should the Company elect to draw upon it. The Company believes that as a result of these events DirectView is now on far more solid financial ground and has the ability to aggressively pursue its business plan to achieve substantial growth in 2005 and continue its efforts to reach profitability.
About DirectView, Inc.
DirectView Inc. (http://www.DirectViewInc.com) is a full-service provider of high-quality, cost efficient videoconferencing technologies and services. DirectView provides multipoint videoconferencing, network integration services, custom room design, staffing, document conferencing and IP/Webconferencing services to businesses and organizations in the United States and around the world. DirectView conferencing services enable our clients to cost-effectively, instantaneously conduct remote meetings by linking participants in geographically dispersed locations.
This announcement contains forward-looking statements that involve risks and uncertainties, including those relating to the Company's ability to grow its business. Further descriptions are available at sec.gov. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the broadband market, broadband availability, the company's limited operating history, the limited financial resources, domestic or global economic conditions. Activities of competitors and the presence of new or additional competition, and changes in Federal or State laws, restrictions and regulations on doing business in a foreign country, in particular China, and conditions of equity markets. More information about the potential factors that could affect the company's business and financial results is included in the Company's filings, available via the United States Securities & Exchange Commission.