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World Surveillance Group Announces $5.5 Million Institutional Financing
KENNEDY SPACE CENTER, FL, Feb 07, 2012 (MARKETWIRE via COMTEX) --
World Surveillance Group Inc. (OTCBB: WSGI), a developer of
lighter-than-air unmanned aerial vehicles ("UAVs") and related
technologies, announced today that the Company has closed on a
Securities Purchase Agreement with a California-based institutional
investor (the "Investor") for an aggregate of $5.5 million (the
"Financing"). The $500,000 initial tranche of the Financing, which
was funded at the closing, was issued in connection with a
Convertible Debenture due in January 2015 and an Equity Investment
Agreement (the "EIA"). Pursuant to the EIA, the Investor agreed to
invest an additional $5.0 million in monthly tranches beginning on
the effectiveness of a registration statement the Company will file
with the Securities and Exchange Commission, but not prior to 91 days
following the closing. The Investor also has the right to purchase an
additional $5.0 million of our common stock at an exercise price of
$0.21 per share for a period of three years, for a total potential
investment of $10.5 million.
The Company plans on using the proceeds of the Financing to expand
the operations of both WSGI and its subsidiary, Global Telesat Corp.
("GTC"), as well as to commercialize and further market our Argus One
line of UAVs. The Company expects to deploy resources to continue the
Government sponsored flight testing and demonstration of our Argus
One UAV in Nevada where the aircraft currently resides, inflated in a
hangar. We also intend to use a portion of the proceeds from the
Financing to pursue GTC contracts for the construction of satellite
ground stations, as well as to expand GTC's sales and marketing
efforts to both potential Government and commercial customers. The
Company also expects to advance its partnership with Oklahoma State
University - University Multispectral Laboratories, LLC ("UML"), to
support additional technical development of our airships as well as
flight testing and demonstrations at UML's Oklahoma Training
Center-Unmanned Systems ("OTC-US") within the U.S. Army's Fort Sill
restricted airspace. WSGI and UML recently completed certain required
flight safety procedures and are in the process of finalizing a
series of flight exercises in Oklahoma following the Argus One UAV
flight exercises in Nevada.
WSGI Chairman of the Board Michael K. Clark stated, "I am pleased we
have formed a relationship with such an established institutional
partner and we look forward to growing our institutional investor
base as we progress with our business plan throughout 2012. The
additional financial resources now available to the Company should
allow our team and partners to accelerate and continue to execute the
Company's strategic plan."
WSGI President and CEO Glenn D. Estrella indicated, "With the
proceeds from the Financing, in addition to commercializing and
marketing our UAV airships, we intend to deploy substantial resources
to accelerate our GTC product and marketing efforts. We look forward
to a successful relationship with our new institutional partner and
expect that with the additional resources available to us, we will be
able to continue to strengthen our balance sheet and increase
shareholder value."
For further information on the Financing, current events and
technical updates, please visit our website at www.wsgi.com.
About World Surveillance Group Inc.
World Surveillance Group Inc. (OTCBB: WSGI) designs, develops,
markets and sells autonomous, lighter-than-air UAVs capable of
carrying payloads that provide persistent security and/or wireless
communications solutions at low, mid, and high altitudes. WSGI's
airships, when integrated with electronics systems and other high
technology payloads, are designed for use by government-related and
commercial entities that require real-time intelligence, surveillance
and reconnaissance or communications support for military, homeland
defense, border control, drug interdiction, natural disaster relief
and maritime missions. For more information regarding WSGI, please
visit www.wsgi.com, or view our reports and filings with the
Securities and Exchange Commission on http://www.sec.gov.
About Global Telesat Corp.
GTC provides satellite airtime and tracking services to the U.S.
government and defense industry end users and resells airtime and
equipment from leading satellite network providers such as
Globalstar, Inmarsat, Iridium and Thuraya. GTC specializes in
satellite tracking services using the Globalstar satellite network
and owns a number of network infrastructure devices containing the
signal processing technology that powers the Globalstar Simplex Data
Service. GTC's equipment is installed in various ground stations
across Africa, Asia, Australia, Europe and South America. For more
information regarding GTC, please visit www.gtc-usa.com.
Forward-Looking Statements
Certain statements in this release constitute forward-looking
statements. These statements include those regarding the timing or
receipt of additional tranches of Financing, any use of proceeds from
the Financing, the exercise of Investor's purchase rights under the
Financing documents, the timing and ability of the Company to get a
registration statement effective, the timing, location or results of
any flight testing or demonstrations of our Argus One UAV, the
outcome of any demonstrations of the Company's airships, the roles to
be performed or capabilities provided during any testing of our UAVs,
the further advancement, development or commercialization of the
Company's UAVs or GTC products, the capabilities and advantages of,
and costs related to, the Company's technology and products, the
Company's proprietary technology, the ability to secure ground
station construction contracts, the benefits, conduct, results or
development of the Company's relationship with UML, the launch of any
new GTC products, the ability to capitalize on commercial demand for
satellite based tracking products or accelerate the Company's access
to the global surveillance and communications market or any other
market, the Company's ability to strengthen any partnership
relationships or expand its institutional shareholder base, the
Company's ability to strengthen its balance sheet or to accelerate or
execute on its strategies or business plan or accomplish any of its
goals, and the Company's ability to deliver increased shareholder
value. The words "forecast," "project," "intend," "expect," "plan,"
"should," "would," and similar expressions and all statements, which
are not historical facts, are intended to identify forward-looking
statements. These forward-looking statements involve and are subject
to known and unknown risks, uncertainties and other factors, any of
which could cause the Company to not achieve some or all of its goals
or the Company's previously reported actual results, performance
(finance or operating) to change or differ from future results,
performance (financing and operating) or achievements, including
those expressed or implied by such forward-looking statements. The
Company assumes no, and hereby disclaims any, obligation to update
the forward-looking statements contained in this press release.
Contact:
World Surveillance Group Inc.
Barbara M. Johnson
321-452-3545
investors@wsgi.com
SOURCE: World Surveillance Group
mailto:investors@wsgi.com
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