Affinity Technology Group Signs $1 Million Convertible Debenture Agreement

Affinity Technology Group Signs $1 Million Convertible Debenture Agreement
Sep 22, 2000 11:50 AM ET

Business Wire

COLUMBIA, S.C., Sep 22, 2000 (BUSINESS WIRE) -- Affinity Technology Group, Inc.
(Nasdaq: AFFI) today announced that it has entered into a $1 million
convertible debenture purchase agreement with an international institutional
Under the terms of the agreement, Affinity will issue to the investor an 8%
convertible debenture in the principal amount of $1 million and a three-year
warrant to acquire 200,000 shares of the company's common stock at a price per
share based on the average market price of Affinity stock at the time of
closing. The debenture is convertible, at the option of the investor, into
shares of Affinity stock at a price equal to the lesser of $1 per share or a
percentage of the average market price of Affinity stock at the time of
conversion. The debenture will mature in 18 months after issuance, subject to
earlier conversion and certain prepayment terms.
The Company will file a registration statement with the Securities and Exchange
Commission to register the shares which may be issued in conjunction with the
debenture purchase agreement. The debenture purchase agreement requires that
funding occur upon the earlier of 30 days after the Company files its
registration statement or upon the effectiveness of the registration statement,
subject to the continued accuracy of the representations and warranties made by
the Company in the agreement.
Joe Boyle, President and Chief Executive Officer of Affinity, said, "As we have
previously stated, we will continue to evaluate capital-raising alternatives to
meet the short-, intermediate-, and long-term capital needs of the Company.
This agreement is an integral part of our overall capital plan, especially for
our short-term working capital goals."
About Affinity Technology Group, Inc.
Affinity's technology enables financial institutions to link their branches,
call centers, Internet customers, and indirect agents electronically to their
credit departments, providing fully automated lending - and, if necessary,
connectivity to a loan officer - through every channel. For financial
institutions, Affinity's solutions expedite loan decisioning and processing and
increase productivity and capacity of branch personnel, call center agents,
loan officers, and indirect agents, while improving the overall customer
experience. Affinity is located on the World Wide Web at
Forward-looking statements in this news release are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that these statements involve several risks and
uncertainties that may cause actual results to differ materially from those
projected. The closing of the $1 million financing described in this press
release is subject to several conditions, including the continuing accuracy of
the representations and warranties made by the company in the financing
agreement. For example, a material negative development involving the company
may cause the company's representations and warranties to become inaccurate.
CONTACT: Affinity Technology Group, Inc. Joe Boyle Chief Executive Officer
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