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Borland secures $25 million financing with option for another $25 million.

Borland International, Inc. Announces Completion of $25 Million Equity
Financing June 30, 1997 4:51 PM EDT

SCOTTS VALLEY, Calif., June 30 /PRNewswire/ -- Borland International,
Inc. (Nasdaq: BORL) today reported the closing of the first round of a
privately placed equity financing arranged by the Promethean Investment
Group, LLC of New York City. The Company raised an aggregate of
approximately $25 million, net of issuance costs, through the sale of a
newly created class of Series B Convertible Preferred Stock ("Series B
Shares") and warrants. The Company, subject to certain conditions, may
call for a second round of financing for up to an additional $25
million. "This equity financing is integral to our turnaround plans and
future growth," said Delbert W. Yocam, chairman and chief executive
officer. "This additional capital enables Borland to invest in
developing and acquiring new technologies and allows Borland to take
advantage of market opportunities." In the initial closing of $25
million, Borland issued 495 Series B Shares and warrants to purchase up
to 198,000 shares of the Company's common stock. The Company is
obligated to issue an additional 55 Series B Shares and warrants for the
purchase of an additional 22,000 shares of common stock. Subject to
certain conditions, including registration of the underlying shares of
the common stock, the Company will receive an additional $2.5 million
from such additional issuance. After the satisfaction of certain holding
periods, each of the newly issued Series B Shares is convertible, at the
option of its holder, into shares of Common Stock of the Company based
upon a conversion price equal to $6.94 or if lower, the lowest closing
market price of the Company's Common Stock during the 7 trading days
prior to the conversion date. The warrants have an exercise price of $
8.67 per share. Subject to certain additional conditions, the Company
has the right, subject to its election, to call for a second round of
financing up to an aggregate amount of $25 million, beginning September
30, 1997 and ending March 31, 1998. This round would involve the
issuance of up to an additional 500 Series B Shares and warrants for the
purchase of 200,000 shares of common stock. Additionally, purchasers of
the Series B Shares are entitled to purchase up to 40% of the number of
Series B Shares held by each investor on or about June 30, 1998 or the
date on which such Series B Shares were subject to mandatory conversion,
if earlier.

Making Development Easier Borland International, Inc. is a leading
provider of high-quality software products for software application
developers worldwide. Borland is distinguished for its award-winning
family of rapid application development tools and scalable middleware
technology for desktop, client/server, Internet/intranet, and enterprise
systems. The Company's products are supported through comprehensive
corporate and independent developer programs, value added resellers, and
systems integrators. Founded in 1983, Borland is headquartered in Scotts
Valley, California. For more information on Borland, customers can visit
Borland Online at http://www.borland.com . NOTE: Forward-looking
statements in this release, including but not limited to, those
concerning Borland's future financial performance, product availability
dates, and the potential features of or benefits to be derived from the
Company's products, involve a number of uncertainties and risks, and
actual events or results may differ materially. Factors that could cause
actual events or results to differ materially include, among others, the
following: possible disruptive effects of organizational or personnel
changes, shifts in customer demand, market acceptance of the Company's
new or enhanced products, delays in scheduled product availability
dates, actions or announcements by competitors, software errors, general
business conditions and market growth rates in the client/server and
Internet software markets, and other factors described in the Company's
S.E.C. reports on forms 10-K, 10-Q, 8-K, and the Borland prospectus
relating to the acquisition of Open Environment Corporation. SOURCE
Borland International Inc. ) PR Newswire. All rights reserved.

 

Re:Borland secures $25 million financing with option for another $25 million.


In article <Pine.SOL.3.95.970701093548.23694A-100...@mail.bcpl.lib.md.us> Howard Rothenburg <hroth...@mail.bcpl.lib.md.us> writes:

Quote
>SCOTTS VALLEY, Calif., June 30 /PRNewswire/ -- Borland International,
>Inc. (Nasdaq: BORL) today reported the closing of the first round of a
>privately placed equity financing arranged by the Promethean Investment
>Group, LLC of New York City. The Company raised an aggregate of
>approximately $25 million, net of issuance costs, through the sale of a
>newly created class of Series B Convertible Preferred Stock ("Series B
>Shares") and warrants. The Company, subject to certain conditions, may
>call for a second round of financing for up to an additional $25
>million. "This equity financing is integral to our turnaround plans and
>future growth," said Delbert W. Yocam, chairman and chief executive
>officer. "This additional capital enables Borland to invest in
>developing and acquiring new technologies and allows Borland to take
>advantage of market opportunities."

I think that Promethean made an astute investment and hope that Borland will
spend this cash infusion wisely.

Borland is a strong and promising company.  They -know- how to build language
products, consistently deliver excellent software that is not "always in the
repair shop," and when they see an innovative idea (like Delphi) they take a
risk, jump on it with both feet, and as a result, smoke the competition.  And
in SPITE of all that the products come out excellent.

It's a trade-off that the company is sometimes so aggressive that it spoils
its cash flows doing it -- but man, what products they produce.  A company
which does this, and which *has* done it consistently since the very
beginnings of the PC industry, is, to me, a very wise long-term investment.

Good luck, Mr. Yocam.  You have a tough battle but I believe that you will
succeed and that we will all continue to benefit from the results.

-Mike Robinson
 (A satisfied customer since day one.)

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