CIMdata PLM Industry Summary Online Archive
24 June 2004
Company News
Avatech Solutions Reports Results of Special Shareholders Meeting; Vote Increases Company's Shares to Facilitate Aggressive Growth
Avatech Solutions, Inc. ( http://www.avatechsolutions.com ) announced that its shareholders, at a special shareholders meeting, have approved an increase in the company's authorized capital stock from 25 million shares to 100 million shares, 80 million of which can be issued as common stock, and 20 million of which can be issued as preferred stock. At the special meeting, the stockholders also approved an increase in the number of shares that can be issued to the company's employees under the company's employee stock purchase plan.
"The purpose of the increase in authorized capital stock is to enable the company's growth, both through new infusions of capital and to provide 'currency' for mergers and acquisitions," said Scotty Walsh, CEO at Avatech Solutions. "A vital part of Avatech's strategic plan is to grow the consulting and professional services component of all three of our lines of business-design automation, product lifecycle management, and facilities management. We intend to acquire companies that fit well within this strategic direction. Further, our financing strategy requires the availability of additional shares-both common and preferred-to facilitate those transactions as well as to raise additional capital."
The special shareholder's meeting was held June 4, 2004 at Avatech's corporate headquarters in Owings Mills, Maryland. In addition to approving the increase in the company's authorized capital shares, the stockholders also voted to increase the numbers of shares available under its employee stock purchase plan to assure that a sufficient number of shares would be available to allow all of its employees to continue to participate. Continued Walsh, "Attracting and retaining the best talent in the industry is an important part of our growth strategy. By offering benefits such as the Employee Stock Purchase Program, we feel we can recruit the calibre of professionals with unparalleled industry expertise our customers have come to expect to deliver superior services."
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