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Euphonix Secures Up to $6.0 Million Borrowing FacilityTo be used for new product development and future operations
The borrowing facility is in the form of a secured promissory note that is convertible into the Company's common stock, with warrant coverage in part based on the amount of the funds borrowed by the Company. The Company has received funds of $1 million from Messrs. Meier and Bosch in September and October of 2001, as initial advances under the new financing arrangement, leaving a total of $5 million remaining under the secured promissory note.
In connection with the new financing arrangement, the Company and the holders of all of the Company's existing convertible promissory notes have agreed to amend the existing promissory notes to, among other things, extend the maturity dates of the notes to December 31, 2003, and reduce the conversion rate of the notes to equal the average of the closing price per share for the three trading days immediately preceding the initial closing of this financing.
Euphonix is a leading manufacturer of large format digital consoles and digital peripherals for broadcast, post and music production. Euphonix consoles offer uncompromised digital audio with the highest audio resolution in the industry. The standard of the future will be 24-bit 96 kHz and is available today from Euphonix. Euphonix consoles offer familiarity and ease of use through elegant control surface design, and are built with a modular approach offering flexibility and expandability assuring reliability and a sound investment today and in the future.
For more information, go to www.euphonix.com.
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