American TonerServ Corp. Completes Private Offering of Preferred Stock
Building a nationwide organization to efficiently serve the printing needs of small- and medium-sized businesses
Press Release -- Graphic Arts Online, October 26, 2009
SANTA ROSA, Calif.--American TonerServ Corp. (OTC.BB:ASVP) (http://www.americantonerserv.com) ("ATS"), a leader in the highly fragmented $6.0 billion printer supplies and services industry, announced that it has completed a private offering of shares of its Series D Convertible Preferred Stock ("Series D Shares"). A total of 7,800,000 Series D Shares were sold to 20 accredited investors at $0.25 per share for an aggregate of $1,950,000 in gross proceeds, of which $950,000 was in the form of cash and the remaining $1,000,000 was in exchange for debt owed by ATS. The cash proceeds are being used for working capital purposes and debt repayment.
Holders of the Series D Shares are entitled to receive cumulative cash dividends in the amount of $0.02 per annum payable in cash on a quarterly basis ($0.005 per quarter) on a cumulative basis. During the first year, each Series D Share may be converted into two shares of ATS common stock. Beginning one year after the initial issuance, each Series D Share may be converted into one share of ATS common stock.
Chuck Mache, CEO of American TonerServ Corp., commented, "We are extremely pleased that this stock sale has been successfully completed. We are confident that we are in the right place at the right time, pursuing a strategy that is focused on accelerating the company's growth while at the same time building shareholder value."
About American TonerServ Corp.
American TonerServ (OTC.BB:ASVP) is a leading marketer of compatible and original-equipment-manufactured toner cartridges. The company is strategically building a nationwide organization to efficiently serve the printing needs of small- and medium-sized businesses by executing on key organic growth initiatives designed to build sales distribution across the country. In the more than $6.0 billion recycled printer cartridge and printer services industry, the company offers top-quality, environmentally friendly products and local service teams to its customers. Please see www.AmericanTonerServ.com for more information.
Quebecor World's Stock Rating Takes Hit
11/29/2007
