American Millennium Corporation Completes Funding
1 February 2000
American Millennium Corporation Completes Funding
GOLDEN, Colo.--Feb. 1, 2000--American Millennium Corporation, Inc. (AMCI) announced today that it has completed the first phase of its funding. This funding will be used to finance the company's near term capital requirements to expand its marketing and engineering objectives.AMCI President and CEO Andrew F. Cauthen confirmed that a private placement offering for $700,000.00 under rule 506, Regulation D of the US Securities and Exchange Commission has been fully subscribed.
According to Cauthen, the private placement offered 2.8 million shares of the company's common stock at a price of twenty-five cents per share. "We are extremely pleased to have completed this funding. This will now allow us to expand our sales and marketing efforts to enroll subscribers to the AMCI satellite based remote monitoring service at an accelerated pace. We currently have a significant amount of potential business in the pipeline within the petroleum and automotive industries that needs engineering and technical support. This funding will immediately accommodate those needs," he stated.
Cauthen noted that at the time the private placement was first offered through Jack Augsback and Associates, Inc., the company's investment banking firm, the share price was approximately twenty-five cents. "Even though our share price has risen dramatically over the last two weeks, we believe that it is important to note that at the time the 506 private placement was released, we offered the stock at its bid price with no discount. I think it is fair to say that our investors felt that paying the market price even for restricted stock still represented a strong upside value," Cauthen added.
AMCI's stock price and trading volume have both risen since its announcement on January 20th regarding the sale of Satellite Communicators (SCs) to General Motors Corporation with the attending monthly revenue tied to the deployment and use of those units by GM.
"Let me re-state that the capability to monitor fixed and mobile remote assets over a truly global satellite system for a few dollars per day is a brand new industry. There is a learning curve involved here that results in the industry proceeding cautiously. However enthusiastic the response to the technology might be, we have always understood the need for our customer base to be completely comfortable with and accepting of this new technology before proceeding with larger orders. We are very confident that those larger orders are on the horizon. The business is out there and AMCI intends to capture a solid share of it," Cauthen stated.
To date, AMCI has also deployed its systems on oil and gas wells for such companies as Griffin Petroleum, Hanover Corporation , which operates high output natural gas compressors for Chevron , Cabot Oil and Gas , Compressor Systems, Inc., and Cross Timbers Oil and Gas .
This press release contains forward-looking statements that involve risk and uncertainties that could cause the company's actual results and experience to differ materially from anticipated results and expectations expressed herein. In particular, AMCI's plans may be revised, and its actual results may differ materially from that indicated by its current plans.
AMCI's web page address is www.amc-wireless.com.