Contact Information: Contact: eLoyalty Corporation Chris Min Vice President and Chief Financial Officer (847) 582-7222
eLoyalty Corporation's Registration Statement for Rights Offering Declared Effective; Announces August 13, 2008 as Record Date for Rights Offering
| Source: eLoyalty Corporation
LAKE FOREST, IL--(Marketwire - August 14, 2008) - eLoyalty Corporation (NASDAQ : ELOY ), a
leading enterprise customer relationship management (CRM) services and
solutions company, today announced that the Registration Statement for its
previously announced common stock Rights Offering was declared effective on
August 13, 2008 by the Securities and Exchange Commission.
eLoyalty also set August 13, 2008 as the record date for the Rights
Offering.
Under the terms of the Rights Offering described in the prospectus
contained in the Registration Statement, eLoyalty intends to distribute
non-transferable subscription rights to purchase up to an aggregate of
2,645,395 shares of its common stock to persons who own shares of
eLoyalty's common stock or Series B Preferred Stock as of the close of
business on the record date.
Each holder of record as of the close of business on the record date would
receive 0.19756 of a subscription right for each share of eLoyalty common
stock and each share of its Series B Preferred Stock owned at the close of
business on the record date, eLoyalty will not distribute any fractional
rights. Instead, fractional subscription rights will be rounded down to the
next whole number.
Each whole subscription right would entitle the holder to purchase one
share of common stock at a purchase price of $5.67 per share, which is the
basic subscription privilege. Stockholders who exercise their basic
subscription privilege in full would also be entitled to purchase
additional shares at $5.67 per share pursuant to an over-subscription
privilege to the extent there are shares that have not been subscribed for
by other holders pursuant to their basic subscription privileges. The
purchase price of $5.67 is the average closing price of eLoyalty's common
stock over the ten trading day period ended August 4, 2008.
eLoyalty expects to mail as soon as practicable a prospectus and other
items necessary for exercising the rights to holders of its common stock
and Series B Preferred Stock as of the close of business on the record
date. The prospectus will contain a description of the Rights Offering and
other information. Questions from stockholders regarding the Rights
Offering or requests for additional copies of the prospectus or other
offering materials may be directed to the information agent for the Rights
Offering, Georgeson Inc. at (800) 334-8612.
The subscription rights will be exercisable until 5:00 p.m. Eastern time,
on September 12, 2008, unless eLoyalty extends the Rights Offering.
eLoyalty reserves the right to cancel or terminate the Rights Offering at
any time prior to the expiration date of the Rights Offering.
This press release does not constitute an offer to sell or the solicitation
of an offer to buy these securities, nor shall there be any sale of these
securities in any state in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws
of any such state.
About eLoyalty
eLoyalty helps its customers achieve breakthrough results with
revolutionary analytics and advanced technologies that drive continuous
business improvement. With a long track record of delivering proven
solutions for many of the Fortune 1000, eLoyalty's offerings include the
Behavioral Analytics™ Service, Integrated Contact Solutions and
Consulting Services, each of which enables focused business transformation.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, including
statements regarding anticipated financial results and other matters that
are not strictly historical in nature. These forward-looking statements
are based on current management expectations, forecasts and assumptions,
and are subject to risks and uncertainties that could cause actual results
to differ materially from those expressed or implied by the forward-looking
statements. The risks, uncertainties and other factors that might cause
such a difference include those described under "Forward-Looking
Statements" and "Risk Factors" in eLoyalty's Form 10-K, Form 10-Q and other
filings with the U.S. Securities and Exchange Commission. Readers are
cautioned not to place undue reliance on forward-looking statements. They
reflect opinions, assumptions and estimates only as of the date they are
made, and eLoyalty Corporation undertakes no obligation to publicly update
or revise any of these forward-looking statements, whether as a result of
new information, future events or circumstances or otherwise.