Photoworks, Inc., announced today a $6.5 million recaptialization plan that, if approved by shareholders, will result in a simpler financial structure for the company and give it more cash to expand digital marketing activities.
"We have received a commitment from a group of investors for a $4 million capital investment," said Philippe Sanchez, PhotoWorks' President and CEO. "In addition, holders of $2.5 million outstanding subordinated debentures have agreed to convert their securities to common stock as have holders of Series A Preferred stock. These conversions to common stock are contingent upon approval by the Company's shareholders of a recapitalization plan to be submitted at the upcoming annual meeting scheduled to be held in March 2005."
"This recapitalization proposal is a major achievement for PhotoWorks and its shareholders," continued Sanchez. "Upon shareholder approval, the Company will be free of long-term debt, will have a simple common stock capital structure devoid of any liquidation preferences, and will have growth capital needed to position the Company for rapid growth in the booming digital market." "
