Globix Exercises Rights to Acquire EDGAR Online Stock
NEW YORK – May 26, 1999
Globix Corporation (NASDAQ: GBIX), announced that in conjunction with the Initial Public Offering of EDGAR Online, Inc. it has converted its $1 million debenture and exercised its warrants issued by EDGAR Online on May 10, 1999. Pursuant to the July 1998 agreement with EDGAR Online, Inc., Globix was issued 670,000 shares of common stock from the conversion of its debenture. By exercising the warrants Globix was issued 696,667 shares of common stock, thereby acquiring a total of 1,336,667 shares of EDGAR Online common stock.
On May 26, 1999 EDGAR Online, Inc. announced the commencement of the initial public offering of 3,600,000 shares of its Common Stock at $9.50 per share. The shares will trade on the NASDAQ National Market under the trading symbol ‘EDGR’. Based on shares outstanding as of May 26, 1999, Globix will own 11.58% of EDGAR Online’s shares after the completion of the initial public offering and has granted underwriters the option to sell 126,000 shares of common stock to cover over-allotments. Should the underwriters elect to exercise the over-allotment option in full, Globix will net approximately $1,112,580 and will own 10.49% of EDGAR Online, Inc. However, no assurance can be given that the over-allotment option will be exercised. The remaining shares would remain subject to an underwriter’s lockup that expires May 26, 2000.
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.