newsbytes@clarinet.com (01/14/90)
IRVINE, CALIFORNIA, U.S.A., 1990 JAN 11 (NB) -- Computer Automation has entered into a loan, warrant and security agreement with a group of private investors which has loaned the company $3,150,000 while the company has issued the investors warrants to purchase shares of its stock. The loan is at 15 percent interest for a 24-month term. The loan is secured by all of the company's assets and guaranteed and/or secured by certain assets of the company's operating subsidiaries. The loan may be prepaid any time. The warrants granted to the lenders, including John F. Blokker, a director of Computer Automation, entitle them to buy 315,000 shares of the company's common stock at $2 per share anytime after Jan. 5. Additional warrants have been granted to purchase 420,000 shares at $1 each after Apr. 30 if the loan has not been repaid. The money from this loan has been used to pay off Computer Automation's previous lender, Sanwa Bank California. Funds remaining after the payoff are earmarked to be used as working capital. (Janet Endrijonas/19900112/Press Contact: William Osmundsen, Computer Automation, 714-833-8830)