Intrusion Inc. Closes $2.7 Million Private Placement
March 28 2005 - 5:47PM
PR Newswire (US)
Intrusion Inc. Closes $2.7 Million Private Placement RICHARDSON,
Texas, March 28 /PRNewswire-FirstCall/ -- Intrusion Inc.
(NASDAQ:INTZ), today announced that it has closed a $2.7 million
private placement of its newly created Series 2 - 5% Convertible
Preferred Stock and warrants. In the private placement, the company
sold 1,065,200 shares of preferred stock at a price of $2.50 per
share, which convert into 1,065,200 shares of common stock at an
initial conversion price of $2.50 per share, and warrants to
purchase 532,600 shares of common stock at an exercise price of
$2.77 per share. The conversion price of the preferred stock was
based on the Company's Common Stock at 85% of the average of the
closing bid price per share for the five business days ended on
March 23, 2005 and the exercise price of the warrants was based on
100% of the closing bid price per share on March 23, 2005. The
warrants are exercisable for a five year period starting on
September 28, 2005. G. Ward Paxton, the company's Chairman,
President and Chief Executive Officer, and James F. Gero, an
outside director to the company, invested an aggregate of $550,000
in the private placement. The remaining purchasers were
institutional investors and individual accredited investors.
Stonegate Securities, Inc. served as financial advisor to the
company in connection with the private placement and received a
warrant to purchase 60,390 shares of common stock at a price of
$2.77 per share, as part of its compensation. The company intends
to file a Form 8-K with the Securities and Exchange Commission on
March 29, 2005 that will provide a description of the private
placement and copies of the definitive agreements. About Intrusion
Inc. Intrusion Inc. is a leading global provider of network
intrusion prevention, intrusion detection, regulated information
compliance and data privacy protection products. In addition,
Intrusion Inc. offers deployment technologies along with security
services for the information-driven economy. Intrusion's product
families include the Compliance Commander(TM) for regulated
information and data privacy protection, Intrusion SpySnare(TM) for
real-time inline blocking of spyware and unwanted P2P applications,
and Intrusion SecureNet(TM) for network intrusion prevention and
detection. Intrusion's products help protect critical information
assets by quickly detecting, protecting, analyzing and reporting
attacks or misuse of classified, private and regulated information
for government and enterprise networks. For more information,
please visit http://www.intrusion.com/ . This release, other than
historical information, may include forward- looking statements
regarding future events or our future performance. These statements
are made under the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995 and involve risks and
uncertainties which could cause actual results to differ materially
from those in the forward looking statements, including, without
limitation, the difficulties in forecasting future sales caused by
current economic and market conditions, the effect of military
actions on government and corporate spending on information
security products, the impact of our cost reduction programs and
our refocused product line, the difficulties and uncertainties in
successfully developing and introducing new products, our ability
to continue to meet operating expenses through current cash flow or
additional financings, our ability to obtain additional financing
on acceptable terms, the highly competitive market for our
products, difficulties in accurately estimating market growth, the
consolidation of the information security industry, the impact of
changing economic conditions, business conditions in the
information security industry, our ability to manage acquisitions
effectively, our ability to manage discontinued operations
effectively, the impact of market peers and their products, as well
as other risks and uncertainties identified in our most recent
filings with the SEC. Copies of these filings can be obtained from
our Investor Relations department. None of the securities
referenced in this press release have been registered with the
Securities and Exchange Commission. These securities may not be
sold, nor may offers to buy these securities be accepted, prior to
the time registration of these securities becomes effective, unless
an applicable exemption from registration is available. This
announcement is neither an offer to sell or a solicitation of an
offer to buy, nor shall there be any sale of these securities in
any state in which such offer, solicitation or sale would be
unlawful, prior to such registration or absent such exemption under
applicable federal and state securities laws. Financial Contact
Michael L. Paxton, VP, CFO 972.301.3658, Media Contact Ben Bittle,
Director of Product Management 972.664.8107,
http://www.newscom.com/cgi-bin/prnh/20030703/INTRUSIONLOGO
http://photoarchive.ap.org/ DATASOURCE: Intrusion Inc. CONTACT:
financial, Michael L. Paxton, VP, CFO, +1-972-301-3658, or , or
media, Ben Bittle, Director of Product Management, +1-972-664-8107,
or , both of Intrusion Inc. Web site: http://www.intrusion.com/
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