EXHIBIT 99.1
THERMATRIX INC. NEWS RELEASE
Thermatrix Inc.
2025 Gateway Place, Suite 132
San Jose, CA 95110
For further information contact: John T. Schofield, Chairman, President & CEO
408-453-0490
Daniel S. Tedone, Executive VP and CFO
423-539-9603
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THERMATRIX CLOSES $6 MILLION EQUITY FINANCING
(San Jose, CA July 8, 1999) -- Thermatrix Inc. (NASDAQ: TMXI) announced today
that it has closed a private placement of $6 Million Convertible Redeemable
Preferred Stock. The two largest existing shareholders of Thermatrix combined
to purchase $3 Million of the Preferred Shares and a single new investor
purchased the remainder.
The Preferred Shares carry an 8% coupon payable in stock or cash upon
conversion. Conversion into Common Stock will be at the lesser of 85% of the
market price or $5.00 per share. Fifty percent of the Preferred Shares may be
converted after November 27, 1999 and the remainder cannot be converted until
after January 26, 2000. The Company has the right to redeem the Preferred
Shares at any time for 130% of the purchase price. The placement of Preferred
Shares included warrants equivalent to 35,000 per $1 Million placed, convertible
within three years at $5.31 per share.
The net proceeds of the placement are to be used for working capital and general
business purposes. This equity transaction represents the first phase of a
three-phase combined equity and debt placement program. The Company expects to
raise up to $27 Million in the remainder of the program and is in active
negotiations to place the balance of the financing. The proceeds of these
phases will be used for additional working capital, execution of the strategic
growth program and to repay seller financed debt associated with the acquisition
of Wahlco Environmental Systems, Inc.
"We are pleased to have completed this critical first phase on a timely basis,"
said John T. Schofield, Chairman, President and CEO. "We believe completion of
the three-phase financing will provide the strong financial base from which to
execute our global growth program."
Thermatrix is a global industrial technology company that provides a range of
products for the destruction or treatment of volatile organic compounds and
hazardous air pollutants, including patented flameless thermal oxidation
technology to provide the world's leading flameless solution for destroying
these pollutants and compounds. Thermatrix is currently focusing its
development activities on the application of its FTO technology to treat
emissions from diesel
engines, both mobile and stationary. Earlier this year Thermatrix significantly
broadened its line of products and services with the acquisition of Wahlco
Environmental Systems, Inc. Wahlco manufactures and sells a variety of
engineered products and related services together with the air pollution control
systems to electric utilities, independent power producers, co-generation plants
and industrial manufacturers worldwide.
This announcement contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities and
Exchange Act of 1934. Actual results could differ materially due to various
risk factors set forth under "Risk Factors" in the Company's Annual Report on
Form 10-K (Commission File No. 0-20819) and such other risks detailed from time
to time in the Company's reports filed with the Securities and Exchange
Commission. The Company undertakes no obligation to publicly release the
results of any revisions to these forward-looking statements which may be made
to reflect events or circumstances after the date hereof or to reflect the
occurrence of anticipated events.
-Thermatrix Inc.-