Globix Corporation Announces Results of Warrant Redemption
NEW YORK – July 21, 1998
Globix Corporation (Nasdaq: GBIX; BSE: GXC) announced today that 581,172 of the Company’s 592,055 redeemable warrants, issued and outstanding pursuant to the Company’s initial public offering in January, 1996 (the ‘IPO Warrants’) had been exercised prior to the scheduled redemption date of July 9, 1998. The Company had originally issued 661,250 warrants in January 1996 of which 69,195 were exercised prior to June 8, 1998 when the Company called for the redemption of the warrants. The 581,172 IPO Warrants that were exercised represented 98% of the total IPO Warrants outstanding and resulted in the issuance of 581,172 shares and aggregate proceeds of $4.3 million to the Company. The Company now has 4,139,816 Shares outstanding. ‘The additional shares issued should make our stock more liquid in the marketpl
The IPO Warrants were exercisable at an exercise price of $7.44 to purchase one Common Share (the ‘Shares’) of the Company. Under the terms of the Warrant Agreement the remaining 10,883 IPO Warrants will be redeemed by the Company upon the presentation and surrender of the IPO Warrants for payment at a price of $0.10 per IPO Warrant or $1,088 in the aggregate. The Company intends to use the proceeds from the exercise of the IPO Warrants, in addition to the $160 million raised earlier this year, to expand and relocate its New York SuperPOP facility and to construct and operate SuperPOPs in London and San Francisco. In addition, the Company intends to use the net proceeds to fund acquisitions in its target markets.
Globix is a leading provider of advanced Internet hosting, network and applications solutions for business. Globix delivers services via its secure state-of-the-art Internet DATA Centers, its high-performance global backbone and content delivery network, and its world-class technical professionals. Globix provides businesses with cutting-edge Internet resources and the ability to deploy, manage and scale mission-critical Internet operations for optimum performance and cost efficiency.