LOUISVILLE, Ky., CINCINNATI and COLUMBUS, Ohio, Feb. 27, 2008 (PRIME NEWSWIRE) -- Beacon Enterprise Solutions Group, Inc. (OTCBB:BEAC) today announced that the company recently completed a $4 million private placement of Preferred Stock and Warrants to accredited investors. The private placement consisted of 40 Units sold at a purchase price of $100,000 per Unit, with each Unit comprised of 100 Series "A" Preferred Shares and a five-year warrant to purchase 66,667 Common Shares at a purchase price of $1.00 per share.
Proceeds were used to fund the cash portion of the Company's recent Phase I Acquisitions, including Bell-Haun Telecom, CETCON, Strategic Communications and ADSnetcurve (totaling $1,650,500), and direct acquisition and transaction related expenses (totaling $1,018,500), with the balance ($1,331,000) added to working capital. Additional information is available in the Company's Current Report on Form 8-K dated February 19, 2008.
On a pro forma combined basis, the Phase I Acquisitions generated revenue for the twelve months ending December 31, 2006, of approx. $10.2 million and net income of approx. $400,000. Additional information is available in the Quarterly Report on Form 10-QSB dated February 19, 2008.
About Beacon Enterprise Solutions Group:
Beacon was formed by the consolidation of four independently successful companies in the IT and Telecom service sectors. Today, Beacon is a unified, single-source provider of technology and telecommunications services, from software development and infrastructure design to interconnect voice/data, security and systems integration. Beacon's client roster includes over 4,000 companies, from small and medium-sized business enterprises (SME market) to Fortune 500 firms, along with state and local government agencies and educational institutions. The Company's business strategy currently centers on a three phase development plan (regional in Phase I, super-regional in Phase II and national in Phase III) driven by a combination of organic and acquisition growth. Headquartered in Louisville, Kentucky, Beacon maintains offices in Cincinnati, Ohio; Columbus, Ohio; and Mangalore, India and services clients globally.
For more information please visit www.askbeacon.com or contact the Company at 502-379-4788 or investors@askbeacon.com.
This press release may contain "forward-looking statements." Expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "could", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "potential", "continue" or the negative of such terms and other comparable terminology. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, competition, expected activities and expenditures as we pursue our business plan. Although we believe that the expectations reflected in any forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Actual results may differ materially from the predictions discussed in these forward-looking statements. Changes in the circumstances upon which we base our predictions and/or forward-looking statements could materially affect our actual results. Factors that could cause or contribute to such differences include, but are not limited to, market acceptance of products and technologies, competitive factors, the Company's ability to continue to secure sources of financing and other factors described in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.