NetSol Technologies Raises $5.5 Million in New Financing

 

NetSol Technologies, Inc. held its annual Board of Directors meeting in London on June 2, 2006. The meeting was followed by a dinner in which High Commissioner Dr. Maleeha Lodhi was the chief guest. The dinner was attended by 40 prominent business groups, including Sir Gulam Noon, DCD Group, Mr. Ahmed Randeree and Shabir Randeree of DCD Group, TIG, and NetSol shareholders. Picture above shows High Commissioner Maleeha Lodhi, Net-Sol Chairman Najeeb Ghauri and former Finance Minister and prominent economist Shahid J. Burki at the dinner

Calabasas, CA: NetSol Technologies, Inc. (NASDAQ:NTWK), a developer of proprietary software applications and provider of information technology (IT) services, has announced that it has reached a definitive agreement to raise $5.5 million through a private placement of convertible notes and warrants with institutional investors. The notes, which mature one year from the date of issuance, will be converted into Series A cumulative convertible preferred stock upon shareholder approval. Maxim Group LLC served as the exclusive placement agent for the transaction.
"We are pleased to announce the completion of this capital raise," said NetSol Chairman, Najeeb U. Ghauri. "The transaction will serve as a springboard for our growth strategy, driving the integration of our acquisition of CQ Systems and McCue Systems, and providing the necessary working capital for our continued global expansion."
The shares of preferred stock which may be issued in the financing, as well as the shares of common stock underlying the convertible notes or the preferred stock and the warrants issued in the financing have not been registered under the Securities Act of 1933, as amended. Accordingly, these shares may not be offered or sold in the United States, except pursuant to the effectiveness of a registration statement or an applicable exemption from the registration requirements of the Securities Act.
Under the terms of the financing, NetSol is obligated to file a proxy statement seeking shareholder approval of the conversion of the note into the preferred and the conversion feature of the preferred stock, within 30 days of closing. The company is also obligated to file a registration statement covering the shares of common stock into which the note is convertible, and the common stock underlying the preferred stock and warrants.
NetSol Technologies is an end-to-end solution provider for the lease and finance industry. Headquartered in Calabasas, CA, NetSol Technologies, Inc. operates on a global basis with locations in the US, Europe, East Asia and Asia Pacific. NetSol helps its clients identify, evaluate and implement technology solutions to meet their most critical business challenges and maximize their bottom line. By utilizing its worldwide resources, NetSol delivers high-quality, cost-effective IT services ranging from consulting and application development to systems integration and outsourcing. NetSol's commitment to quality is demonstrated by its achievement of both ISO 9001 and SEI (Software Engineering Institute) CMM (Capability Maturity Model) Level 4 assessment. For more information, visit NetSol Technologies' web site at www.netsoltek.com.

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