COMPANY
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FOR IMMEDIATE RELEASE
Contact:
Madalynne Chapman: (510) 608-5744 mchapman@velos.com
VELOS RECAPITALIZES AND REORGANIZES ---
SERVICECART TO BE SPUN-OFF
San Francisco, CA -
July 31, 2001 - Velos, Inc., an innovative provider of software
for healthcare providers, announced today the completion of equity
financing and the restructuring of equity and debt investments.
Under the terms of the recapitalization, $3M of debt financing was
converted to Preferred Stock; the remaining $1M in debt will be
payable over three years beginning July 1, 2002; appropriately $1M
in trade credits were established; and $1M in new equity financing
was completed. In addition, the company announced plans to divest
its ServiceCart internet software provisioning technology into a new
company to be led by James J. Rossiter, the current Velos Chief
Executive. John S. McIlwain, Velos Chairman and a Co-Founder, will
assume Chief Executive responsibilities at Velos. Jim Rossiter will
remain a member of the Velos Board.
“For some time now, our
ability to grow has been limited by a relatively significant debt
obligation,” notes John McIlwain. “This restructuring creates a
manageable capital and operating structure from which to build and
was made possible by significantly improved operating results Velos
achieved over the past nine months.”
“ServiceCart is a
breakthrough Extranet Access Management software solution that
integrates application services across the Internet in an easy and
secure manner. By creating a new entity to bring this important
solution to Healthcare and beyond, ServiceCart will have a focused
team with skills in building Internet infrastructure,” says Jim
Rossiter. “I’m pleased that we were able to make the operating
improvements necessary to trigger the Velos recapitalization and
spin off ServiceCart for broader market penetration.”
John
McIlwain continues, “Velos will focus solely on its current
specialty medical business and the related launch of Velos
eResearch, a product which make possible significant new
efficiencies in clinical study execution by investigators and their
sponsors. I feel fortunate for our shareholders that Jim plans to
take ServiceCart forward as a new company and stay involved with
Velos at the Board level.”
About Velos
Velos is
a leading designer and developer of innovative healthcare
information systems. Velos provides an integrated clinical and
administrative product suite for specialty medicine and clinical
research. Velos markets its software solutions, together with system
integration and support services, to healthcare providers and
clinical trial sponsors. Velos is privately held with headquarters
in Silicon Valley.
This press release contains
forward-looking statements that are subject to risks and
uncertainties that could cause actual results to differ materially
from those set forth in the forward-looking statements. These
forward-looking statements represent Velos’ judgment as of the date
of this release. Actual results may differ materially from those
projected. Velos disclaims any intent or obligation to update these
forward-looking statements.
Information regarding the press
release may be obtained by contacting Madalynne Chapman
(510-608-5744 / mchapman@velos.com) or visiting
our website: www.velos.com
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