Laurus Master Fund Supports SpaceDev’s Working Capital Needs
SpaceDev
has entered into a $1 million revolving credit
facility in the form of a three-year Convertible Note with the Laurus Master
Fund, Ltd. (“Laurus”). The net proceeds from the Convertible Note, secured by
the assets of SpaceDev, will be used for general working capital purposes.
Advances on the Convertible Note may be repaid in cash or through the issuance
of the Company’s common stock. The Convertible Note also includes a right of
conversion in favor of Laurus at a fixed conversion price of $0.55 per share,
which will be adjusted if and when the first $1 million is converted. In
conjunction with this transaction, Laurus received a five-year warrant to
purchase up to 200,000 shares of SpaceDev’s common stock. SpaceDev will also
issue up to an additional 100,000 shares of SpaceDev’s common stock with
respect to conversion amounts. The note and the warrant(s) contain anti-
dilution provisions. Documents related to the credit facility will be
described in and attached to a current report on Form 8-K.
“We are very pleased to have formed a financial partnership with Laurus
Fund,” said James W. Benson, founding chairman and chief executive. “With
this financing in place, SpaceDev has achieved another important milestone as
it marshals its resources to commercialize micro satellites and hybrid
propulsion technology.”
David Grin, fund manager of Laurus stated, “We are excited about the
future of SpaceDev and are impressed with their management team, vision and
business plan. We feel the Company’s technology makes this an attractive
investment opportunity for us and look forward to a long-term relationship
with SpaceDev.”
Laurus is a private institutional equity fund, based in New York City,
which specializes in providing financing to growing, small and mid-
capitalization companies.
About SpaceDev
SpaceDev provides affordable and innovative
space products and solutions to government and commercial enterprises.
SpaceDev products and solutions include the design, manufacture, marketing and
operation of sophisticated micro and nano satellites, hybrid rocket-based
orbital maneuvering and orbital transfer vehicles (MTVs) as well as safe sub-
orbital and orbital hybrid rocket-based propulsion systems. SpaceDev has been
awarded contracts from the Air Force, NASA, National Reconnaissance Office
(NRO), Boeing, Jet Propulsion Laboratory (JPL), California Space Authority
(CSA), Scaled Composites and other commercial customers. For more
information, visit www.spacedev.com .
This news release may contain forward-looking statements concerning the
Company’s business and future prospects and other similar statements that do
not concern matters of historical fact. Forward-looking statements relating
to product development, business prospects and development of a commercial
market for technological advances are based on the Company’s current
expectations. The Company’s current expectations are subject to all of the
uncertainties and risks customarily associated with new business ventures
including, but not limited to, the level of sales to key customers; the
economic conditions affecting our industry; actions by competitors;
fluctuations in the price of raw materials; the availability of outside
contractors at prices favorable to the Company; our dependence on single-
source or a limited number of suppliers; our ability to protect our
proprietary technology; market conditions influencing prices or pricing; an
adverse outcome in litigation, claims and other actions, and potential
litigation, claims and other actions by or against us; technological changes
and introductions of new competing products; the current recession; terrorist
attacks or acts of war, particularly given the acts of terrorism against the
United States on September 11, 2001 and subsequent military responses by the
United States; mission disasters such as the loss of the space shuttle
Columbia on February 1, 2003 during its re-entry into earth’s atmosphere;
ability to retain key personnel; changes in market demand; exchange rates;
productivity; weather; and market and economic conditions in the areas of the
world in which we operate and market are products. The Company’s actual
results may differ materially from current expectations. Readers are
cautioned not to put undue reliance on forward-looking statements contained in
this release and to read it in conjunction with the Company’s annual report on
Form 10-KSB, including the consolidated financial statements filed therewith.
The Company disclaims any intent or obligation to update publicly these
forward-looking statements, whether as a result of new information, future
events or for any other reason.