DOBBS FERRY, N.Y. -- June 19, 1996 -- href="chap11.fingermatrix.html">Fingermatrix
Inc. (NASDAQ/EBB:FINX), the electronic fingerprinting company,
Wednesday reported the final exercise date for the company's B-
Warrants, which are exercisable at $2.00 per share, has been changed
from Sept. 28, 1996, to Jan. 14, 1997.
These warrants were established a year ago in the Plan of
Reorganization under which the company emerged from Chapter 11
bankruptcy.
However, it has now been determined that the Sept. 28 exercise
deadline is not in compliance with the bankruptcy court's order,
according to Thomas T. Harding, president and chief executive
officer of Fingermatrix. Moving the final date for exercise to Jan.
14, 1997, corrects that error, he said.
The B-Warrants are tradeable and will shortly be listed on the
NASDAQ Bulletin Board under the symbol FINXW, Harding added.
Although the Sept. 28 date is printed on the back of all B-
Warrant certificates issued to date, the company's transfer agent
has been instructed to accept exercises through Jan. 14, 1997.
CONTACT: Molesworth Associates Inc., Green Valley, Ariz.
Gordon Molesworth, 520/625-0035
IRVINE, Calif., June 19, 1996 - Pinnacle Micro,
Inc.
(Nasdaq: PNCL) announced today that it has signed a nonbinding term
sheet for a $15 million "Regulation S" off-shore placement of
convertible debentures that will be taken down in two tranches of
$10 million and $5 million. The Company also announced today the
results of its discussions to date with representatives from Bank of
America, the Company's lender.
Loan Agreement with Bank of America
On Monday, June 17, representatives of the Company met with
representatives of Bank of America to discuss the status of the
Company's current line of credit. As previously disclosed, the
Company was in default of certain covenants under the line of credit
agreement as of December 30, 1995. Pursuant to a letter dated June
18, 1996, Bank of America advised the Company that it has breached
and is in default under the credit agreement for failing to pay to
the Bank on June 17, 1996, all outstanding principal, accrued
interest and costs aggregating approximately $5 million. The Bank
also indicated that it was charging the Company the default rate of
interest under the Agreement and agreed to forbear from exercising
its remedies through July 1, 1996. Discussions between the Bank and
the Company are continuing and no assurances can be given as to the
outcome of such discussions or that the Bank will not elect to
exercise its remedies after July 1, 1996. The Bank has stated,
however, that if the Company can show substantial progress towards
closing the private placement, the Bank would give reasonable
consideration to further forbearance.
Convertible Debenture Offering
The Company is negotiating with several foreign capital sources.
Detailed negotiations over the terms of the investment are in
process with one such entity which resulted in the signing of a non
binding term sheet for a "Regulation S" offshore placement of
convertible debentures. Under the anticipated terms of the
financing, $10 million of debentures would be placed in a first
tranche to be followed approximately 60 days after the first closing
by a second tranche of $5 million. Placement of the debentures is
on a "best efforts basis," and the closing is subject to conditions
including customary approvals, final documentation and other
matters. The Company hopes to be able to close the first tranche of
the financing within four to six weeks.
It is anticipated that the debt would be convertible into common
stock of the Company in 25 percent increments commencing 60, 90,
120, and 150 days from closing at a negotiated discount from market
price.
"Although this is not yet a done deal, this is an encouraging
event, and it shows a belief in the Company and its future," said
Lawrence Goelman, Pinnacle Micro's president and CEO. "Working
capital is the lifeblood of any company. We still have a lot of
work ahead of us before the close, but as soon as completed the
offering will rejuvenate the Company."
If successful, proceeds of the financing will be used for
working capital after paying down the Bank of America loan. This
additional capital will enable the Company to proceed with its
planned production of Vertex and relaunch of Apex.
Pinnacle Micro, Inc. is a recognized leader in recordable CD
technology and optical storage systems for general data storage and
data intensive applications such as network storage, imaging,
desktop publishing and prepress, as well as emerging applications
such as digital audio/video editing and commercial multimedia.
Founded in 1987, Pinnacle Micro, Inc. is headquartered in Irvine, CA
with offices in North America, Europe and the Pacific Rim.
CONTACT: Megan Morrow, Investor Relations, of Pinnacle Micro,
800-553-7070 x3114 or 714-789-3114 direct,
href="http://www.pinnnclemicro.com/" target=_new>http://www.pinnnclemicro.com/">http://www.pinnnclemicro.com/
MINNEAPOLIS, MN -- June 19, 1996 -- Brauns Fashions
Corporation
(Nasdaq-NNM: BFCI) today announced revised earnings for the fourth
quarter and the full year ended March 2, 1996 to reflect the
writeoff of its deferred tax assets.
As previously reported, sales for the fourth quarter totaled
$26,380,000, an increase of 6% from $24,967,000 the prior year.
(The quarter included fourteen weeks as compared to thirteen weeks
the prior year.) Same store sales increased 1 percent. The net
loss for the fourth quarter was previously reported to be $163,000
or $.04 per share. Due to the uncertainty of realizing the value of
the deferred tax assets in future years, the Company's auditors
required the full amount of $1,789,000 or $.47 per share to be
written off. The net loss for the quarter was $1,952,000 or $.51
per share after recording the valuation allowance. This compares to
net income of $653,000 or $.17 per share for the same quarter the
prior year. (Fourth quarter earnings for the year ended February
25, 1995, included a one time benefit of approximately $.06 per
share resulting from year-end accrual adjustments.)
Net sales for the fiscal year ended March 2, 1996, a fifty-three
week year, were $97,296,000, an increase of 4 percent from
$93,961,000 in the prior year, a normal 52 week year. Same store
sales decreased 3 percent. The net loss for the year was $1,669,000
or $.44 per share, prior to establishing the above mentioned
valuation allowance and was $3,458,000 or $.91 per share after
recording the valuation allowance. This compares to a net loss of
$245,000 or $.06 per share in the prior year.
At March 2, 1996, the Company was in default of three financial
covenants of its Revolving Credit Facility with its Banks. Based
upon the results of operations through the first three months of
fiscal 1997, it is likely that the Company will be in default of
certain financial covenants of its Revolving Credit Facility and its
9% Senior Notes during fiscal 1997 as well.
As a result of these actual and probable technical defaults, the
Company has retained Price Waterhouse, independent financial
consultants, to advise management on alternatives available to
restructure its operations and financial obligations for the long
term. In the meantime, the Company continues to negotiate with its
lenders.
Nicholas H. Cook, Chairman and Chief Executive Officer said, "We
are operating in an industry that is undergoing major change. Our
principal focus is on the long-term future of the Company. With the
added advice of our independent consultant, we are prepared to do
what is necessary to operate successfully in this changing and
challenging environment."
Brauns Fashions Corporation, based in Minneapolis, Minn., is a
regional retailer of women's fashions that currently operates 221
stores in 22 states, primarily in the Midwest and Pacific Northwest.
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 2, 1996 February 25, 1995
Fourteen Weeks Thirteen Weeks
Net sales $26,380 $24,967
Net income (loss) $(1,952)(a) $653
Net income (loss)
per common share $(0.51)(a)(b) $0.17(b)
Three Months Ended
March 2, 1996 % of February 25, 1995 % of
Fourteen Weeks Sales Thirteen Weeks Sales
Net sales $26,380 100.0 $24,967 100.0
Cost of sales 19,135 72.5 17,652 70.7
Gross profit 7,245 27.5 7,315 29.3
Selling, general
and administrative 6,400 24.3 5,264 21.1
Depreciation and
amortization 787 3.0 753 3.0
Operating income 58 0.2 1,298 5.2
Interest, net 305 1.1 245 1.0
Income (loss) before
income taxes (247) (0.9) 1,053 4.2
Income tax provision
(benefit) 1,705(a) 6.5(a) 400 1.6
Net income (loss) $(1,952)(a) (7.4)(a) $653 2.6
Net income (loss)
per common share $(0.51)(a)(b) -- $0.17(b) --
(a) In fiscal 1996, the Company recorded a valuation allowance
of $1.8 million, or $.47 per share, equal to the full amount of its
deferred tax assets, due to the uncertainty of realizing the value
of these assets in future years.
(b) Based on the weighted average number of outstanding shares
of common stock and common stock equivalents of 3,792,632 for the
period ended March 2, 1996 and 3,791,272 for the period ended
February 25, 1995.
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share amounts)
Fiscal Year Ended
March 2, 1996 February 25, 1995
Fifty-Three Weeks Fifty-Two Weeks
Net sales $97,296 $93,961
Net income (loss) $(3,458)(a) $(245)
Net income (loss)
per common share $(0.91)(a)(b) $(0.06)(b)
Fiscal Year Ended
March 2, 1996 % of February 25, 1995 % of
Fifty-Three Weeks Sales Fifty-Two Weeks Sales
Net sales $97,296 100.0 $93,961 100.0
Cost of sales 70,386 72.4 68,108 72.5
Gross profit 26,910 27.6 25,853 27.5
Selling, general
and administrative 24,897 25.6 22,565 24.0
Depreciation and
amortization 3,154 3.2 2,690 2.9
Operating income
(loss) (1,141) (1.2) 598 0.6
Interest, net 1,388 1.4 993 1.0
Income (loss) before
income taxes (2,529) (2.6) (395) (0.4)
Income tax provision
(benefit) 929(a) 0.9(a) (150) (0.1)
Net income (loss) $(3,458)(a) (3.5)(a) $(245) (0.3)
Net income (loss)
per common share $(0.91)(a)(b) -- $(0.06)(b) --
(a) In fiscal 1996, the Company recorded a valuation allowance
of $1.8 million, or $.47 per share, equal to the full amount of its
deferred tax assets, due to the uncertainty of realizing the value
of these assets in future years.
(b)Based on the weighted average number of outstanding shares of
common stock and common stock equivalents of 3,791,612 for the
period ended March 2, 1996 and 3,785,132 for the period ended
February 25, 1995.
BRIGHTON, Mich., June 19, 1996 - href="chap11.fretter.html">Fretter, Inc. (Nasdaq:
FTTR) announces a loss of $5,000,000 ($.47 per share) on sales of
$22,000,000 for the first quarter ended April 30, 1996. Such sales
and loss reflect the inclusion of the Company's wholly owned
subsidiaries, but exclude Dixons U.S. Holdings, Inc. and its
subsidiaries which is the former Silo consumer electronics and
appliance store chain. Dixons U.S. Holdings, Inc. and its
subsidiaries filed for voluntary Chapter 11 Bankruptcy proceedings
on December 4, 1995.
Fretter also announces that its remaining six operating
locations in Metropolitan Detroit, currently conducting going out of
business sales, will close forever on Monday, June 24, 1996.
Fretter continues to explore alternative retail marketing
concepts involving substantially larger retail stores, both in
relation to existing Fretter stores and those of its major
competitors. The ability of the Company to exploit this new retail
concept is dependent on a number of factors, including feasibility
of such store format; reversing the Company's lack of liquidity,
developing new sources of financing for inventory and capital
improvements and favorable resolution of significant litigation
matters - principally related to the Dixons bankruptcies.
Accordingly, the Company likely will either restrict its business to
the leasing and sale of its remaining portfolio of owned real estate
or seek protection under the United States Bankruptcy Code to either
liquidate its remaining assets in partial satisfaction of its
creditors' claims or to restructure its debts and restrict its
business to the leasing and sale of its real estate holdings.
CONTACT: Dale Campbell of Fretter, 810-220-5178