TEMPE, Ariz., April 22, 2004 (PRIMEZONE) -- Time America, Inc. (OTCBB:TMAM) ("Time America"), a leading developer and marketer of time and labor management solutions, announced today that it has completed the private placement of $2 million in aggregate principal amount of convertible notes with Laurus Master Fund, Ltd. ("Laurus Funds"), a financial institution specializing in funding small and micro-capitalized companies.
The convertible notes have a term of three years, bear interest at the prime rate and are payable in monthly installments of principal and interest in cash or by issuance of shares of our common stock, at the option of Laurus Funds, subject to certain limitations. The number of shares of common stock issuable in payment of principal and interest is subject to a fixed conversion price of $1.17. In consideration for providing such financing, Laurus Funds was also issued warrants to purchase up to 280,000 shares of Time America's common stock.
Commenting on this agreement, Mr. Thomas Bednarik, President and CEO of Time America, said, "We are very pleased to close on this round of financing with Laurus Funds and view it as a significant milestone in the growth of our Company. This agreement provides us with the capital we need to pursue our strategic acquisition program, which is a vital component of our long-term growth plan. The large but highly fragmented time and labor management industry offers ample opportunity for consolidation and we expect to significantly expand our footprint over time as we execute on this element of our business plan. Our 16-year operating history, brand identity and customer relationships make us a strong partner for businesses that offer complimentary products and services.
We believe the Company is well positioned to implement the next stage of its growth in the time and labor management industry and we look forward to building a long-term relationship with Laurus to assist us in our efforts to enhance the business and increase shareholder value."
About Time America, Inc.
Time America, Inc. (OTCBB:TMAM) is a leading provider of web-based, client-server and PC-based workforce management solutions. With more than 16 years of experience, Time America's family of NETtime(tm), HourTrack(tm) and GENESIS(tm) solutions deliver cost-effective management of labor resources, automation of time and attendance, data collection, workforce scheduling and payroll processing. The Deloitte Technology Fast 500 recently honored Time America as one of the 500 fastest growing technology companies in North America. For more information, please visit the Time America Web site at www.timeamerica.com.
The note and the common stock issuable upon conversion of the note have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and may not be offered or sold in the U.S. absent registration under, or an applicable exemption from, the registration requirements of the Securities Act and applicable state securities laws.
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NETtime is a registered trademark of Time America, Inc. All other names are the property of their respective owners.
Forward Looking Statements
Certain information and comments contained in this press release may be 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). Factors set forth in the Company's Annual Report on Form 10-KSB for the fiscal year ended June 30, 2003, and subsequently filed form 10-QSB's, together with other factors that appear in this press release or in the Company's other Securities and Exchange Commission filings could affect the Company's actual results and could cause the Company's actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of the Company, in this press release.