Corel Scores Financing Deal with Unnamed Investor
- 21 September, 2000 12:01
After announcing it will eliminate 139 jobs in Ireland as part of a $US40 million cost-cutting program, software developer Corel Corp. announced an unnamed investor could purchase up to 14.7 million shares of the company over the next two years.
The shares represent 19.9% of Corel's 73.5 million shares total and are valued at $US56 million.
Derek Burney, acting president and CEO of the Ottawa-based company, said in a statement yesterday that the cash infusion will supplement the company's cash reserves and allow it to invest in future opportunities.
The investor will receive an initial 169,500 warrants and another 169,500 on each succeeding draw down. Each warrant allows the holder to purchase stock within a three-year window from its date of issuance.
Corel is allowed to set a minimum sale price. Provided the number exceeds Corel's limit, the investor will pay 95% of the weighted average daily price for each share.
Corel spokeswoman Louise Hanlon said the company cannot divulge the name of the investor at this time and that it will not make any statements regarding its current financial status until it releases its third-quarter financial report Sept. 27. Burney said in the release that Corel will likely announce a realignment of its organizational structure at that time.
Recently, the company has weathered a series of bad-news days, including financial losses, layoffs and a failed deal to merge with U.S. development tools vendor Inprise/Borland Corp. Last month, the company's CEO, chairman and founder, Michael Cowpland, resigned to pursue new start-up opportunities.
Earlier this month, the software vendor said it would cut 139 software development and technological support jobs at its facility in Dublin.