ACCESS INTEGRATED TECHNOLOGIES COMPLETES $18.1 MILLION IN PRIVATE PLACEMENT
MORRISTOWN, N.J. - July 21, 2005 - Access Integrated Technologies, Inc. ("AccessIT") (AMEX: AIX) today announced that it has completed its previously announced approximately $18 million private placement of 1,909,115 shares of Class A common stock at $9.50 per share with institutional and other accredited investors. Investors have also received warrants, exercisable upon receipt, to purchase 477,275 shares of Class A common stock at $11.00 per share. Use of proceeds for the financing will be to fund capital investments in the first Digital Cinema systems contemplated in the Christie/AIX rollout plan and provide working capital.
"This financing kick-starts our announced 2,500 screen rollout which will impact both our Christie/AIX subsidiary and our Access Digital Media division. The virtual print fees we expect under our plan will be in addition to the fees we will get for digital delivery of those movies and other content, as well as the licensing of our Theatre Command Center software, providing our Company with visibility for substantial increases in revenue and EBITDA for the next 12 years," said Bud Mayo, Chief Executive Officer of AccessIT.
The private placement was made only to accredited investors in a transaction exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The shares of common stock and warrants issued, and the shares of common stock issuable upon exercise of the warrants, have not been registered under the Securities Act, or any state securities laws, and unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.
This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities, nor shall there be any sale of the securities in any jurisdiction in which such offering would be unlawful.
Access Integrated Technologies, Inc. (AccessIT) is an industry leader in offering a fully managed storage and electronic delivery service for owners and distributors of digital content to movie theaters and other venues. Supported by its robust platform of fail-safe Internet data centers, AccessIT is able to leverage the market-leading role of its Theatrical Distribution System (TDS) with its innovative digital delivery capabilities and in-theatre software systems to provide the highest level of technology available to enable the emerging Digital Cinema industry to transition from film without changing workflows. For more information on AccessIT, visit www.accessitx.com.
Safe Harbor Statement
Investors and readers are cautioned that certain statements contained in this document, as well as some statements in periodic press releases and some oral statements of AccessIT officials during presentations about AccessIT, along with AccessIT 's filings with the Securities and Exchange Commission, including AccessIT 's registration statements, quarterly reports on Form 10-QSB and annual report on Form 10-KSB, are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements that are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "expects", "anticipates", "intends", "plans", "could", "might", "believes", "seeks", "estimates" or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by AccessIT's management, are also forward-looking statements as defined by the Act. Forward-looking statements are based on current expectations and projections about future events and are subject to various risks, uncertainties and assumptions about AccessIT, its technology, economic and market factors and the industries in which AccessIT does business, among other things. These statements are not guarantees of future performance and AccessIT undertakes no specific obligation or intention to update these statements after the date of this release.
Suzanne Tregenza Moore
55 Madison Avenue
Morristown, NJ 07960
Joel Pomerantz or Michael Glickman
The Dilenschneider Group