Exhibit 99.1
[GoAmerica letterhead ]
CONTACT:
Joe Karp
Voice 201-527-1518
TTY 201-527-1520
jkarp@goamerica.com
GOAMERICA CLOSES $14.5 MILLION PRIVATE PLACEMENT
Funding Results in Improved Balance Sheet, Enables Execution of
Refocused Business Strategy
Hackensack, NJ--March 10, 2004-- GoAmerica, Inc. (NASDAQ: GOAM) announced today
that it closed a private placement financing for $14.5 million led by
institutional investor Special Situations Funds. GoAmerica's stockholders
approved the transaction at a Special Meeting held earlier today. The Company
issued approximately 105 million shares of its common stock, as well as warrants
to purchase an additional 11,578,512 shares of its common stock, pursuant to
purchase commitments between the Company and the private placement investors.
This cash infusion will allow the Company to fund working capital needs, grow
its core Wynd Communications business and launch new services for the company's
constituency of people with hearing loss.
"Completion of this financing caps a significant balance sheet enhancement
program that we started in the third quarter of 2003," said Dan Luis,
GoAmerica's CEO. "With our debt restructuring and financing issues behind us, we
now have the financial strength to focus on executing our business plan. We will
make every effort to establish GoAmerica as the premier provider of
communication services for people who are deaf or hard of hearing."
In addition to closing its financing, the Company announced today that Donald
Barnhart has been promoted from Vice President, Controller to Chief Financial
Officer. "Don is a seasoned finance professional and he skillfully addressed the
challenges we faced in 2003," said Luis. "His work with our creditors, bankers,
auditors and new investors has proven that he is more than ready for his new
responsibilities."
"The last year presented financial challenges that would have been difficult for
any business to overcome," said Barnhart. "I'm pleased that we've successfully
moved the Company forward, and that we can enter the next phase of our business
with a strong balance sheet."
Update on Milestones
Since receiving an initial $1 million bridge financing in December of 2003,
GoAmerica has achieved several operational milestones.
o The Company's New York data center has been successfully moved
to a lower cost outsource provider, creating substantial
monthly operating savings.
o Wynd Communications' administrative functions for billing,
order management, sales, marketing, and finance have all been
consolidated from California to the Company's New Jersey
headquarters.
o Two phases of the Company's three-phase customer support
outsourcing relationship with Communications Services for the
Deaf have been completed. The final phase is targeted for
completion by the end of the first quarter.
o The Company has implemented a comprehensive customer feedback
process, enabling timely monitoring of the customers' sale and
service experiences.
The Company is also on track with its plans to close Wynd's California office by
the end of April, when it completes the transition of its data and fulfillment
centers and remaining customer support functions.
"I'm pleased with the progress we're making in executing our consolidation
plans," said Luis. "Our success in these areas will provide us with the solid
footing we need to hit the ground running on sales and marketing programs."
Securities Disclosure
The securities sold in this private placement have not yet been registered under
the Securities Act of 1933, as amended (the "Act"), and may not be offered or
sold in the United States in the absence of an effective registration statement
or exemption from the registration requirements under the Act. In accordance
with the terms of the Purchase Agreement entered into by the Company and the
investors in connection with this financing, the Company has agreed to file a
resale registration statement on Form S-3 promptly after today's closing of the
private placement.
About GoAmerica
GoAmerica, Inc.'s aim is to improve the quality of life for people who are deaf
or hard of hearing by being their premier provider of innovative communication
services. These technology-based services are delivered through GoAmerica's
wholly owned subsidiaries, including Wynd Communications Corporation, the
leading provider of wireless telecommunications services for people with hearing
loss. Wynd Communications is a winner of the California Governor's Award for
Excellence in Universal Design and Technology and has been recognized by both
the Clinton and Bush Administrations for its commitment to Americans with
disabilities. For more information, visit www.goamerica.com or contact GoAmerica
directly at TTY 201-527-1520, voice 201-996-1717.
The statements contained in this news release (including our estimate regarding
the availability of cash resources) that are not based on historical fact are
"forward-looking statements" within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended. Forward-looking statements may be identified
by the use of forward-looking terminology such as "may", "will", "expect",
"estimate", "anticipate", "continue", or similar terms, variations of such terms
or the negative of those terms. Such forward-looking statements involve risks
and uncertainties, including, but not limited to: (i) our limited operating
history; (ii) our ability to successfully manage our strategic alliance with
EarthLink; (iii) our dependence on EarthLink to provide billing, customer and
technical support to certain of our subscribers; (iv) our ability to respond to
the rapid technological change of the wireless data industry and offer new
services; (v) our dependence on wireless carrier networks; (vi) our ability to
respond to increased competition in the wireless data industry; (vii) our
ability to integrate acquired businesses and technologies; (viii) our ability to
generate revenue growth; (ix) our ability to increase or maintain gross margins,
profitability, liquidity and capital resources; and (x) our ability to manage
our remaining operations; and (xi) difficulties inherent in predicting the
outcome of regulatory processes. Such risks and others are more fully described
in the Risk Factors set forth in our filings with the Securities and Exchange
Commission. Our actual results could differ materially from the results
expressed in, or implied by, such forward-looking statements.
Each reference in this news release to "GoAmerica", the "Company" or "We", or
any variation thereof, is a reference to GoAmerica, Inc. and its subsidiaries.
"GoAmerica", "Go.Web", "Go.Web Enterprise Server", "Mobile Office", and "OnPrem"
are trademarks or service marks of GoAmerica, Inc. "WyndTell", "Deafwireless",
and "Deafwireless Superstore" are trademarks or service marks, and "Wynd" and
"WyndTell" are registered trademarks of Wynd Communications Corporation. Other
names may be trademarks of their respective owners.
###