EXHIBIT 99
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| | Investor Contacts: | | Fredrick R. PilonStockerYale, Inc.(603) 870-8229email: fpilon@stockeryale.com |
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| | Press Contacts: | | James GargasStockerYale, Inc.(603) 870-8217email: jgargas@stockeryale.com |
STOCKERYALE COMPLETES $6.6 MILLION FINANCING
Salem, NH, February 25, 2004 - - StockerYale, Inc., (NASDAQ: STKR), an independent provider of advanced illumination and optical products, today announced that it completed the placement of $6.6 million consisting of $4.0 million in Convertible Notes with Laurus Master Fund, Ltd., ("Laurus Funds"), and $2.6 million of common stock with existing and new institutional investors. The note is convertible into StockerYale common shares at $1.30 a share. The note carries an interest rate of 2.0% above prime, is subject to a minimum of 6.0%, and is payable in either cash or stock. The Company can elect to pre-pay the three-year notes in cash.
The private placement of 2,330,129 shares of common stock was completed with existin g and new institutional investors at $1.15 per share. These institutional investors were also issued 582,531 warrants entitling them to purchase common stock at $1.50 per share over five years. In addition, the investors were granted 582,531 additional investment rights entitling them to purchase common stock at $1.15 per share. These rights expire 90 trading days after StockerYale completes the registration of the common stock shares.
The Company used the proceeds to refinance the mortgage on its Salem, New Hampshire headquarters, which is currently listed for sale with C.B. Richard Ellis.
"We continue to make strong progress improving the quality of our balance sheet by replacing short-term debt with longer-term debt," said Mark W. Blodgett, chief executive officer. "Over time, this debt can be converted into equity which will allow us mo re financial flexibility," added Blodgett.
About StockerYale
StockerYale, Inc., headquartered in Salem, NH, is an independent designer and manufacturer of structured light lasers, light emitting diodes, (LEDs), fiber optic, and fluorescent illumination technologies as well as specialty optical fiber and phase masks for use in a wide range of markets and industries including the machine vision, telecommunications, aerospace, defense and security, utilities, industrial inspection, and medical markets.
StockerYale serves a widely varied, international customer base and reinvests a significant percentage of its revenues in R&D to meet the future requirements of its customers. StockerYale has offices and subsidiaries in the U.S., Canada, Europe, and the Pacific Rim.
For more information about StockerYale and their innovative products, contact StockerYale, Inc.,
32 Hampshire Rd., Salem, NH, 03079. Call 800-843-8011; Fax 603-893-5604;
Email info@stockeryale.com.
Notice to Investors:
This press release contains forward-looking statements that do not give full weight to all the potential risks, but relate to StockerYale’s plans, objectives, and expectations, which are dependent upon a number of factors outside of StockerYale’s control including, but not limited to: uncertainty that StockerYale’s new photonics-based products launched in 2002 will gain market acceptance; the risk that delays and unanticipated expenses in developing new products could delay the commercial release of those products and affect revenue estimates; the risk that one of our competitors could develop and bring to market a technology that is superior to those products that we are currently developing; and StockerYale’s ability to capitalize on its significant research and development efforts by successfully marketing those products that the Company develops. You should also refer to the discussion under "Certain Factors Affecting Operating Results" in StockerYale’s form 10K for additional matters to be considered in this regard. Thus, actual results may differ materially. All Company, brand, and product names are trademarks or registered trademarks of their respective holders. StockerYale undertakes no duty to update any of these forward-looking statements.
This press release also contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to, among other things, the Company's future operating results and sales trends. Reliance should not be placed on forward l ooking statements because they involve known and unknown risks, uncertainties and other factors which are in some cases, beyond the control of StockerYale, which may cause the actual results, performance or achievements of the Company to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements.
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