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8-K - FORM 8-K - BROOKSIDE TECHNOLOGY HOLDINGS, CORP. | g22778e8vk.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Brookside Contact:
Nicholas Salerno
ANA Consultants, LLC
(813) 787-0760
Brookside Technology Reaches Agreement in Principal with Financial Partners
April 1st, 2010 Brookside Technology Holdings Corp. (OTCBB:BKSD) today announced that
it has reached a non-binding agreement in principle with Chatham Credit Management III LLC, the
Companys senior lender (Chatham Capital), and Vicis Capital Master Fund, a sub-trust of Vicis
Capital Series Master Trust, and the Companys largest preferred shareholder (Vicis), to
restructure the Companys senior credit facility and to further capitalize the Company. Among other
things, the Company anticipates that, at the closing of the contemplated transactions, Vicis would
invest an additional $3 million in equity and Chatham Capital would agree to modify the Companys
senior credit facility to waive all prior defaults, extend the term of the senior loan to September
23, 2012, and eliminate and/or modify certain financial covenants.
Michael Nole, Chairman and CEO of Brookside, commented, The past year has demonstrated the
great resolve of our Company, the tremendous loyalty of our employees and customers alike, and the
support of our financial partners. This anticipated restructuring and capitalization comes at a
time when our Company is gaining momentum and serving a growing range of organizations and
geographical markets. Additionally, this event enables us to once again look for accretive
acquisitions that align with our business model
and further expand our national footprint. With
offices throughout California, Kentucky, Indiana and Texas, the Company is becoming one of the
largest distributors of voice and data convergent communications, video and Web conferencing,
access control, security and surveillance.
Shad Stastney, Managing Partner of Vicis added, Vicis has never been so confident in
Brookside and its management team. We believe our additional equity investment will provide the
necessary working capital for the Company to enhance its organic growth and target attractive
acquisitions. The closing of the contemplated restructuring and capitalization is expected to
occur by April 15,
2010, but is subject to various conditions, including the preparation and execution of
mutually acceptable loan modification and equity investment agreements. While the Company is
working diligently towards a timely closing and does not anticipate any obstacles in this process,
there can be no assurances that these conditions will be satisfied or the contemplated transactions
completed.
About Brookside Technology Holdings Corp
Brookside Technology Holdings Corp., through its subsidiary Companies, is a leading provider of
voice and data convergent communications, video and Web conferencing, access control, security and
surveillance. Specializing in analyzing, designing, selling, and implementation, Brookside offers a
unique portfolio of products and services that solve todays telecommunications challenges by
combining technology, business, and financial solutions. Brooksides customers include both
commercial and state/government organizations of all types and sizes throughout the United States.
The Company seeks to grow organically and through the acquisition of complementary businesses
looking to capitalize on the highly specialized growth market of providing turnkey converged voice
and data solutions. With a proven track record of acquiring profitable businesses at attractive
valuations, Brookside plans to leverage its expanding capabilities and combined customer bases of
its portfolio companies. Additional information on the company can be found at www.brooksideus.com.