CVSL Announces $20 Million Sale Of 4% Convertible Notes To Richmont Capital
Partners V LP
DALLAS, Dec. 11, 2012
DALLAS, Dec. 11, 2012 /PRNewswire/ -- Computer Vision Systems Laboratories,
Corp. (stock symbol: CVSL) announced today the sale of $20 million of 4%
convertible notes to Richmont Capital Partners V LP ("RCP V").
CVSL intends to use the net proceeds from the offering to execute its strategy
of making acquisitions in the direct selling sector and for other
purposes.CVSL's chairman, John P. Rochon, recently announced the company's
intention to acquire direct selling companies in multiple categories such as
home, health and wellness and beauty.
The notes bear interest at 4% and are convertible into shares of CVSL common
stock at $.33 per share.The initial principal balance, plus any accrued
interest, would be converted into a minimum of 60 million shares of CVSL
common stock.Rochon Capital Partners, Ltd., CVSL's largest shareholder,
intends to surrender the approximately 60 million shares necessary, to allow
CVSL to issue the shares upon conversion of the notes. The total number of
shares of CVSL common stock outstanding will therefore remain unchanged upon
CVSL is a public company based in Dallas, Texas. The company has outlined a
broad strategy to become a platform for acquiring multiple direct selling
companies. CVSL's chairman, Mr. Rochon, has owned, invested in and managed
dozens of businesses in a wide variety of global industries over his nearly
40-year career. Among these, he served as Chairman and CEO of Mary Kay, Inc.,
one of the world's largest direct selling companies and as general partner of
Richmont Capital Partners I, L.P., which at one time was one of the largest
shareholders of Avon Products, Inc.
About Richmont Capital Partners V
RCP V LP is a private investment partnership formed to raise capital for
investments primarily in the direct selling industry.John Rochon Jr., a
director of CVSL and the son of John P. Rochon, controls the sole general
partner of RCP V.Michael Bishop, a current CVSL director, is a limited
partner in RCP V.
Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements that involve risks and
uncertainties. All statements other than statements of historical fact
contained in this press release, including statements regarding future events,
our future financial performance, business strategy, and acquisitions
strategy, and our plans and objectives for future operations, are
forward-looking statements. We have attempted to identify forward-looking
statements by terminology including "anticipate," "believe," "can,"
"continue," "could," "estimate," "expect," "intend," "may," "plan,"
"potential," "predict," "project," "should," or "will" or the negative of
these terms or other comparable terminology. Although we do not make
forward-looking statements unless we believe we have a reasonable basis for
doing so, we cannot guarantee their accuracy. These statements are only
expectations and involve known and unknown risks, uncertainties and other
factors, including the risks outlined under "Risk Factors" in our Annual
Report on Form 10-K for our fiscal year ended December 31, 2011 and in our
Form 8-K filed on October 1, 2012 and those discussed in other documents we
file with the Securities and Exchange Commission, which may cause our actual
results, levels of activity, performance or achievements expressed or implied
by these forward-looking statements to differ materially from expectations.
Except as required by law, we undertake no obligation to update or revise
publicly any of the forward-looking statements after the date of this press
release to conform our statements to actual results or changed expectations.
SOURCE Computer Vision Systems Laboratories Corp.
Contact: Russell Mack, firstname.lastname@example.org, +1-972-398-7136
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