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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