CIMdata PLM Industry Summary Online Archive
5 February 2007
Company News
Avatech Solutions Announces New Chairman and Strategic Investment
Avatech Solutions, Inc. announced that Board member Thom Waye, Managing Partner and Founder of Sigma Opportunity Fund, LLC , will succeed W. James Hindman as Chairman effective immediately. Mr. Hindman will remain on the Avatech Board.
Avatech also announced that it has closed on a private placement of common stock and common stock warrants with Sigma Opportunity Fund, LLC and three members of its Board of Directors who made personal investments, George Davis, Robert Post and Gary Clark. Under the terms of the private placement, the Company raised $1,650,000 through the sale of 1,085,170 common shares priced at $1.5205 per share and the issuance of 726,102 warrants to purchase common shares at $1.5205 per share.
W. James Hindman commented, "Avatech has already benefited greatly from Thom's unique combination of financial and operational experience since he joined our Board in November 2006. With his outstanding business acumen and track record of success, Thom is superbly qualified to help lead the Company through its next phase of development."
Thom Waye stated, "On behalf of the entire Company, I want to express my gratitude to Jim Hindman. As demonstrated by his many successes, including the founding of Jiffy Lube, he is one of the most creative and successful entrepreneurs with whom I have worked. Taking from his real-life experience as a football coach, Jim mentored and 'coached' the Avatech management team from the kickoff to the playoffs. Over the last 10 years, he brought new vision and focus to the Company, repositioning Avatech for future growth and success.
"The further investment from several Board members and Sigma Opportunity Fund clearly demonstrates our substantial commitment to, and confidence in, the Company's growth prospects. The proceeds from this private placement, coupled with the Company's on-going success, provide us with additional funds to capitalize on the tremendous opportunities that await the Company. We are now prepared to continue Jim's work in expanding Avatech's national presence and furthering its transformation into a diversified services and solutions provider."
Additional information regarding the common stock and warrant purchase agreement is contained in the Company's current report on Form 8-K, which has been filed with the Securities and Exchange Commission.
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