Affinity Technology Group Signs Equity Financing Agreement

Affinity Technology Group Signs Equity Financing Agreement
Sep 26, 2000 12:25 PM ET Business Wire
COLUMBIA, S.C., Sep 26, 2000 (BUSINESS WIRE) -- Affinity Technology Group, Inc.
(Nasdaq: AFFI) today announced that it has entered into an equity line
financing agreement with an international institutional investor. The company
previously announced a $1 million convertible debenture agreement with an
unrelated investor.
Under the terms of the equity line agreement, Affinity has the sole discretion
to sell up to 6,000,000 shares of its common stock periodically in monthly
installments over an 18-month period. Shares issued under the equity line
arrangement will be priced at a discount to the volume weighted average daily
price of Affinity stock at the time of sale. The company will not be allowed to
sell any shares under the agreement until it has registered the resale of such
shares under the Securities Act of 1933. Depending on the number of shares the
company ultimately issues under the agreement, the company may be required to
obtain shareholder approval for the transaction under Nasdaq rules applicable
to transactions involving the issuance of a number of shares of stock equal to
or in excess of 20% of the number of shares outstanding prior to the
transaction. The company has also issued the investor a three-year warrant to
acquire 720,000 shares of Affinity stock at 115% of the average market price of
Affinity's stock on the day of issuance.
Joe Boyle, President and Chief Executive Officer of Affinity, said, "This is a
significant step in our capital-raising efforts. The structure of this equity
line is exceptionally well suited to accommodate our changing capital needs. We
plan to immediately begin taking the steps necessary to allow us to begin
selling shares under the agreement, which we hope to be able to do within the
next three to four months, and perhaps sooner."
The shares of common stock to be sold to the investor under the agreement have
not been registered under the Securities Act of 1933 and may not be offered or
sold without registration or the availability of an applicable exemption from
registration. Affinity is required to register such shares for resale by the
investor under such Act. This announcement does not constitute an offer to sell
or the solicitation of any offer to buy common stock of Affinity. Any public
offering by such investor will be made by means of a prospectus included in a
registration statement to be filed by the company with the Securities and
Exchange Commission.
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 www.affi.net.
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. In particular, the sale of shares under the agreement described in
this press release is subject to an effective registration statement under the
Securities Act of 1933 covering the resale of such shares. Any statements
regarding the time required to effect such registration represents management's
estimate based on facts and circumstances existing on the date hereof. Such
estimates may turn out to be inaccurate due to several factors, including
unexpected positive or negative developments affecting the company that make
the registration process more difficult as well as the length and level of any
review of such registration statement by the Securities and Exchange
Commission. In addition, the sale of shares under such agreement is subject to
several conditions, including the continuing accuracy of the representations
and warranties made by the company in the financing agreement. A material
negative development affecting the company would cause such representations and
warranties to no longer be accurate and may prohibit the company from selling
shares under such agreement.
CONTACT: Joe Boyle Chief Executive Officer 803/758-2528
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KEYWORD: SOUTH CAROLINA INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS INTERNET

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