SANTA MONICA, Calif., Feb. 14, 2011 /PRNewswire/ -- Derycz Scientific, Inc. (OTC Bulletin Board: DYSC), a company pioneering a fresh way of facilitating information flow from content publishers to enterprise customers and their constituents, today announced that it has entered into definitive agreements with investors to purchase $3 million of units in a private placement transaction at a price per unit of $2.50. Each unit is comprised of one share of common stock and one warrant to purchase one-quarter of a share of common stock. Under the terms of the transaction, the Company will issue and sell an aggregate of 1,200,000 shares of its common stock and warrants to purchase up to 300,000 additional shares of its common stock at a warrant exercise price of $3.00 per share. The warrants expire three years from the date of issuance. Derycz will receive approximately $3 million from this offering.
"We believe that the capital raised from the private placement will enable us to accelerate our business plan by providing us with the ability to increase our product development activities, as well as strengthen our balance sheet," said Derycz's CEO Peter Derycz.
Derycz intends to use the proceeds of the private placement for working capital purposes. T.R. Winston & Company, LLC served as the exclusive placement agent for the transaction.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities. The securities offered and sold in the private placement have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration under the Securities Act and applicable state securities laws. The offering is expected to be consummated by February 15, 2011, subject to customary closing conditions.
About Derycz Scientific®
Derycz Scientific, Inc. develops companies, products, services and systems that facilitate the re-use of published content in a manner that helps organizations achieve their marketing, communication and research goals effectively and in compliance with copyright law and regulatory rules. Its subsidiary companies include Reprints Desk and Pools Press. Reprints Desk offers a one-stop solution for reprints, ePrints and single articles, and has delivered millions of articles worldwide. Reprints Desk is an innovator in content retrieval and ePrint delivery, and its services are designed to help make effective use of published articles in a copyright-compliant manner. Pools Press has excelled in the reprint market for more than 30 years. It provides professionally printed articles from medical and technical journals; prints booklets, catalogs, pamphlets, direct mail pieces and newsletters; and works with publishers who wish to outsource a portion of or all of their reprints business. For more information, please visit www.deryczscientific.com.
Forward-Looking Statements
Certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; acceptance of the Company's products in the market; the Company's success in obtaining new customers; the Company's success in technology and product development; the Company's ability to execute its business model and strategic plans; and all the risks and related information described from time to time in the Company's filings with the Securities and Exchange Commission ("SEC"), including the financial statements and related information contained in the Company's Annual Report on Form 10-K. The Company assumes no obligation to update the cautionary information in this release.
SOURCE Derycz Scientific, Inc.