Quintek Technologies, Inc. (OTCBB:QTEK) announced today that it has signed an agreement with the private equity fund, Golden Gate Investors, based in San Francisco, CA to provide Quintek with $3.3 million in capital. This capital will allow Quintek to move forward and execute its growth plans.
The deal is structured as two year $300,000 convertible notes paying 5 3/4% interest and 3,000,000 warrants to purchase common stock for a period of three years at $1.00. The notes will be converted periodically over the next two years at prices up to $0.50 a share based on the market price of Quintek’s common stock prior to conversion. Upon conversion of the note, the fund is obligated to simultaneously exercise the $1.00 warrants providing added funding to the company.
Quintek CEO Robert Steele stated, “This institutional funding will allow the company to produce the rapid growth that we anticipate. This transaction also shows how our relationship with WestPark Capital has expanded our access to institutional investors.” Steele added, “The funding deal with GGI comes on the heels of a recent institutional commitment from a London-based investment company to purchase shares from Quintek at market price with a two year hold, further validation of our plan and showing that there is long term interest in our Company. We anticipate continued growing interest from individual and institutional investors.”
Golden Gate Investors goal is to establish relationships and add value to public companies by providing financial resources, experience, and industry knowledge. The fund is managed by a group led by Norman Litz. Mr. Litz graduated at the top of his class from Wharton and Berkeley (MBA in finance) and went on to hold numerous positions on Wall Street as an analyst for Value Line, Wertheim, and Lehman Brothers. He was a Portfolio Manager for the no. 1 ranked Oppenheimer Fund. Norman has been the President of a commercial real estate brokerage firm and the Senior Partner of a private investment partnership.
WestPark Capital, Inc., is a full service investment banking and securities brokerage firm headquartered in Los Angeles, California. WestPark provides a wide range of services for both private and public companies, as well as to individuals and institutional investors worldwide. Some of these services include; Mergers & Acquisitions, Acquisition Financing, Initial Public Offerings , Secondary Offerings, Private Placements, PIPES, Recapitalization, Restructuring, Valuations, Fairness Opinions, etc.
Quintek Technologies, Inc. has been a manufacturer of hardware and software and a service provider to the corporate and public sector markets since 1991. The Company’s new division, Quintek Services Inc. (QSI) delivers Business Process Outsourcing (BPO) services and Information Lifecycle Management (ILM) solutions to document intensive industries such as public utilities, healthcare, insurance, financial, legal, telecommunications and manufacturing.
The solutions and services the Company provides enable organizations to secure and manage their information and document business processes more efficiently. The Aberdeen Group, a provider of IT market intelligence, forecasts 13 percent annual growth for the BPO industry through 2005, when the market is projected to reach $248 billion.
This press release contains forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including statements regarding potential sales, the success of the company’s business, as well as statements that include the word “believe” or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Quintek to differ materially from those implied or expressed by such forward-looking statements. Such factors include, among others, the risk factors included in Quintek’s Annual Report on Form 10-KSB for the fiscal year ended June 30, 2002 and any subsequent reports filed with the SEC under the Exchange Act. This press release speaks as of the date first set forth above and Quintek assumes no responsibility to update the information included herein for events occurring after the date hereof. Actual results could differ materially from those anticipated due to factors such as the lack of capital, inability to secure funding, timely development of products, inability to deliver products when ordered, inability of potential customers to pay for ordered products, and political and economic risks inherent in international trade.
For further information, please contact:
WestPark Capital, Inc. (310) 843-9300
1900 Avenue of the Stars, Suite 310
Los Angeles, CA 90067