Code-Alarm Announces Plan to Pay off Debt
23 May 2000
Code-Alarm Announces Plan to Pay off DebtInvestment Will Fund New Product Development and Technology Expansion MADISON HEIGHTS, Mich., May 22 Code Alarm, Inc. (OTC Bulletin Board: CODL) today announced that it has reached an agreement with Detroit Technology Ventures, LLC (DTV) and its primary investors to pay off its senior debt by issuing two new classes of preferred equity. The Madison Heights, Mich.-based maker and marketer of vehicle security, remote keyless-entry and remote car-starter products said the investment will allow Code-Alarm to fund technology expansion and new product initiatives. As part of the agreement, the investors also agreed to invest additional capital in Code-Alarm to fund research and development efforts for a new generation of electronic car security and convenience products. "This plan represents a milestone in our effort to improve Code-Alarm's balance sheet and provide the necessary financial resources for the future," said Peter Stouffer, President and Chief Operating Officer of Code-Alarm. "Over the past year, we have been focused on the development of a major new product and electronics platform, which we intend to launch late this year. We believe the innovative new technology we've developed will reshape the vehicle security and convenience market." Stouffer continued: "We appreciate the confidence that DTV and our primary investors are showing in the Company's future. The entire management team of Code-Alarm is committed to executing our business plan successfully in the months and years to come."