Science Dynamics
Completes Laurus Financing Restructuring Liens and
Obligations Removed, Paves Way For Growth Pennsauken, NJ, July 26, 2006 -- Science
Dynamics Corporation (OTC Bulletin Board: SIDY), a provider of advanced
technological solutions to key government agencies and enterprise customers,
announced today it has entered into an agreement to restructure its debenture
with the Laurus Master Fund. CEO Paul Burgess said, “This restructuring represents a critical achievement for
Science Dynamics. We have agreed to pay
off the entire $2 million debenture with Laurus in exchange for a waiver of
previous defaults and removal of all related liens and indebtedness. In addition to saving Science Dynamics
significant fees and penalties, this agreement strengthens our balance sheet
and enables us to seek additional financing more favorable to shareholder
growth. “Science Dynamics is in a
dramatically different financial position as a result of this agreement,” said
Burgess. “Laurus played an important role in the progress we have made over the
past several years, enabling us to finance the acquisition of SMEI and
providing us with working capital as we transformed our business. Since placing
the convertible with Laurus in February of last year, we completed a
transformative acquisition, grew sales to $4.7 million on a trailing 12-month
basis and became EBITDA positive as we grew the value of our service contracts
with clients to more than $16 million. We appreciate Laurus’ assistance and
their continuing confidence in us.
Laurus will continue to be an important shareholder.” Science Dynamics will pay
off the existing Laurus $2 million debenture by August 31, 2006. The company
will pay Laurus $500,000 in cash and issue 1 million restricted common shares
immediately and will pay another $250,000 in cash to Laurus on August 1, 2006.
By August 31, 2006, Science Dynamics will issue an additional 8,333,333
restricted common shares and pay $750,000 in cash to Laurus. In exchange, Laurus will consider the
existing convertible debenture repaid in full and will waive all previous
defaults and liens on the company. Upon
fulfilling the terms of this agreement, Science Dynamics will have no
outstanding indebtedness to Laurus. For additional details on
the terms of the agreement between the company and Laurus, see Form 8-K filed
by the company with the Securities and Exchange Commission on January 26, 2006. About Science Dynamics
Corporation Science Dynamics Corporation (SciDyn) is a
provider of advanced information and communications technology to the
government and commercial markets. The company’s technology services division
designs, deploys and manages advanced technological solutions at key government
agencies and mid- to large-sized enterprises.
SciDyn’s technology products division consists of several core
proprietary platforms used to develop customized software applications with
military grade security in multiple vertical markets. For more information, visit http://www.scidyn.com . An
investment profile about Science Dynamics may be found at http://www.hawkassociates.com/sciencedynamics/profile.php . For investor relations information regarding
Science Dynamics, contact Frank Hawkins or Julie Marshall, Hawk Associates, at
(305) 451-1888, e-mail: info@hawkassociates.com . An online investor relations kit including
copies of press releases, current price quotes, stock charts and other valuable
information for investors may be found at http://www.hawkassociates.com and http://www.americanmicrocaps.com . Forward-Looking
Statements: Certain statements made in this press release by Science Dynamics
Corporation are forward-looking statements. Although such statements are based
on current expectations, they are subject to a number of future uncertainties
and risks, and actual results may differ materially. Any forward-looking
statements are made pursuant to the Private Securities Litigation Reform Act of
1995 and, as such, speak only as of the date made. Statements made in this
document that are not purely historical are forward-looking statements,
including any statements as to beliefs, plans, expectations, anticipations or
intentions regarding the future. Science Dynamics Corporation assumes no
obligation to update information concerning the forward-looking statements
contained herein. Home
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