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World Am to Receive Up to $11,000,000 in Financing From Golden Gate Investors Designed to Help Accelerate Development of Its Isotec, Senz-It Product Lines
Monday February 13, 3:20 pm ET

Investment Banker Agrees to Additional Investment in the Company Up to $2,750,000

NEWPORT BEACH, CA--(MARKET WIRE)--Feb 13, 2006 -- World Am, Inc. (OTC BB:WDAM.OB - News) today reported that the company has entered into a transaction with Golden Gate Investors, Inc. to make an investment of up to $11,000,000 in the company. As part of the transaction, the San Francisco-headquartered investment banking firm has a warrant to purchase additional shares that may result in additional proceeds of $2,750,000 to World Am.

"World Am will initially receive a total of $500,000: $100,000 in the form of a convertible debenture on closing, and an additional $150,000 -- $50,000 to cover registration filing expenses, and an additional $100,000 payable on filing of the registration statement covering the filing," said President & CEO Robert A. Hovee. "Both these additional amounts represent payments towards the exercise of a warrant under the transaction. Upon the effectiveness of the registration statement, the company will receive an additional $250,000 in the form of a third prepayment toward the exercise of a warrant.

"Thereafter," Mr. Hovee continued, "terms of the transaction call for up to an additional $10,500,000 in equity purchases. These will come in the form of warrant exercises made in equal monthly installments of approximately $500,000, commencing on the effectiveness of the registration statement.

"We are pleased to have negotiated this financing package, and believe that it sets the stage for World Am to fully implement its business plan," the CEO observed. "These investments will help to ensure that we can develop and commercialize World Am`s technological expertise -- both our Isotec state-of-the-art security systems and our Senz-It patent protected sensory product applications, once the license option is exercised by Senz-It from the State University of New York at Buffalo."

Additional information on the company is available at http://www.world-am.com or http://www.isotecinc.com
Autor (Datum des Eintrages): stoxxroxx  (14.02.06 17:28:59)
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