Host America Announces Release from Laurus Obligation
30 1월 2006 - 8:00PM
PR Newswire (US)
HAMDEN, Conn., Jan. 30 /PRNewswire-FirstCall/ -- Host America
Corporation (OTC:CAFE.PK) and Laurus Master Funds, Ltd. signed a
Release and Cancellation Agreement on Wednesday, January 11, 2006.
The two parties had previously entered into a financing agreement
in June 2004, which included two fixed price convertible notes with
a face value of $4,000,000 each, and in February 2005 entered into
a common stock purchase warrant agreement for 25,000 shares. These
notes have been converted into common stock of the corporation.
Under the terms of the Release and Cancellation Agreement, in
consideration for the issuance of 20,000 shares of Host common
stock, Laurus has consented to the cancellation of the common stock
purchase warrant for 25,000 shares issued in connection with the
February 2005 warrant agreement and agreed to release all security
interests and liens which Host and its subsidiaries previously
granted to Laurus as part of the original financing agreement. In
addition to the 20,000 shares issued as described above, Laurus
continues to hold warrants to purchase 146,962 shares of Host
common stock at a purchase price of $6.23 per share. Pursuant to
the Release and Cancellation Agreement, Host will provide Laurus
with piggy back registration rights with respect to the
aforementioned shares. As of the date of this release, there are
6,897,940 shares of Host common stock outstanding, in which Laurus
does not hold a beneficial ownership position. Host America
Corporation provides customized energy management and conservation
solutions for commercial, industrial and real estate customers. The
Company's food management business provides outsource food
management on a long-term contract basis for corporations, schools,
Meals on Wheels, and Head Start programs. The Company employs
approximately 470 employees and is headquartered in Hamden, CT. The
Company's website is http://www.hostamericacorp.com/. "Safe Harbor"
statement under the Private Securities Litigation Reform Act of
1995: The statements contained in this release, which are not
historical facts and that relate to future plans or projected
results of Host, are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Host's actual results may vary
materially from those described in any forward-looking statement
due to, among other possible reasons, the realization of any one or
more of the risk factors described in Host's Annual Report on Form
10-K, or in any of its other filings with the Securities and
Exchange Commission, all of which filings any reader of this
release is encouraged to study. These risks and uncertainties
include the risks associated with Host's entry into new commercial
food and energy markets that require the company to develop demand
for its products, its ability to access the capital markets,
litigation, regulatory investigations and many other risks
described in Host's Securities and Exchange Commission fillings.
Readers of this release are cautioned not to put undue reliance on
forward-looking statements. Contact: Host America Corporation
Investor Relations 203-248-4100 x371 DATASOURCE: Host America
Corporation CONTACT: Investor Relations of Host America
Corporation, +1-203-248-4100 ext. 371 Web site:
http://www.hostamericacorp.com/
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