For Immediate Release
Contact: Roger Kuhn
INSCI Corp
508-870-4014
Compuserve: 102133,2466
WESTBOROUGH, MA. - September 12, 1996 - INSCI Corp today announced that it had completed a private placement, through J. Michael Reisert Inc. as placement agent, of preferred convertible stock in the amount of $2.5 million dollars. Under the terms of the placement agreement an additional $2.5 million may be subscribed to for a period of up to sixty days. The proceeds of this financing will primarily be used for acquisitions. According to Ted Prince, INSCI's Chairman and Chief Executive Officer, “ INSCI's products and services support the fastest growing segment of the automated document factory market, that is, client/server based creation of digital data repositories for distribution, viewing and printing of historical data for large enterprises. We believe that we can expand our leadership position in this market through an acquisition strategy that focuses on adding marketing channels and product offerings that are synergistic to the solutions based needs of this marketplace. The financing that we have completed provides us with the flexibility to pursue this strategy. ”
Under the terms of the placement, a minimum of 666,667 units and a maximum of 1,333,334 units at $3.75 per unit can be sold for an aggregate minimum of $2,500,000 and maximum of $5,000,000. Each unit consists of one share of 8% convertible redeemable preferred stock that is convertible into one share of common stock, and one redeemable common stock warrant exercisable for three years to purchase one share of common stock at $5.00 per share.
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INSCI Corp (National NASDAQ: INSI) develops, markets and supports software for the automated document factory market including client/server electronic printing and document management software utilizing optical disk, CD and automated tape libraries to index, archive, retrieve and distribute computer-generated documents and scanned images including statements, reports, invoices and transaction data. The Company provides customers with an extensive range of system integration and consulting services based upon its expertise in integrated output management, electronic printing, imaging, document management, print-on-demand , data storage, data warehousing and data mining. The Company markets its products through a combination of a direct sales force and marketing relationships with companies including Xerox Corporation, Unisys, Oce Printing (formerly Siemens Nixdorf Printing Systems) and Storage Technology Corporation.
The Company is headquartered in Westborough, MA. For more information about INSCI Corp, visit its home page on the Internet at http:/www.insci.com. The terms of today's financing will be additionally disclosed in the Company's Form 8K to be filed with the Securities and Exchange Commission within the next fifteen days.
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