NORTH PLAINFIELD, N.J., Jan. 3, 2006 (PRIMEZONE) -- CDKNet.com, Inc (OTCBB:CDKN) announced today that it has issued $2.0 million of an authorized $3.5 million 6% Secured Convertible Debentures to certain institutional investors. The 6% Secured Convertible Debentures mature on December 28, 2008, and are convertible into shares of the company's common stock at a conversion price of $0.85 per share. The company also granted the purchasers of the Secured Convertible Debentures warrants to purchase 941,875 shares of common stock for $0.85 per share at anytime prior to the earlier of twelve months after the effective date of the registration statement to be filed by company with the Securities Exchange Commission under the terms of the transaction documents or December 28, 2007, and additional five year warrants to purchase 941,875 shares of common stock for $1.00 per share. In connection with the $2.0 million private placement, the company agreed to register the shares of common stock issuable upon conversion of the debentures and upon exercise of the warrants for resale under the Securities Act of 1933.
Oleg Logvinov, Chief Executive Officer of the company and its wholly owned subsidiary, Arkados, Inc., commented, "Securing this first part of our financing marks an extremely significant point in our development for many reasons. First, it is a key step in our effort to restructure our balance sheet. Secondly, we believe that it provides the company with the appropriate working capital necessary to permit Arkados to start marketing its ArkTIC family of powerline networking solutions in a meaningful way, and to expand its development effort in connection with our next generation products based on the recently announced HomePlug AV specification. As an officer of the HomePlug Alliance, I can't help but be enthusiastic that this capital infusion coincides with the Alliance's recent announcements that Intel, Motorola and General Electric joined the Alliance's board, and that the HomePlug AV specification, into which Arkados has had significant development input, is approved."
About Arkados Inc.
Arkados Inc. has developed, and plans to manufacture and supply system-on-chip semiconductors to enable easy-to-use digital connectivity between many consumer entertainment and computing devices. Redefining "plug and play," Arkados solutions are designed to create a virtual, home-wide entertainment and information network enabling digital data to be shared between stereos, radios, computers, speakers, mp3 players, televisions, cable and DSL modems, and a host of other devices. Arkados' semiconductors are designed to facilitate the production of sophisticated, full-featured products at a lower production cost, faster time-to-market, and a high degree of programmability. Arkados chips are designed to conform to HomePlug Powerline Alliance standards and can also be used for in-building and to-the-home applications. The Company has strategic partnerships with Leviton Inc, and GDA Technologies.
CDKNet.Com, Inc. (OTCBB:CDKN) and its wholly owned Arkados Inc. subsidiary are based in North Plainfield, N.J.
This report includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company and the risks and uncertainties detailed from time to time in reports filed by the company with the Securities and Exchange Commission. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, and the impact of competitive services and pricing and general economic risks and uncertainties.