April 13, 2000 – MangoSoft Inc. (OTC BB: MNGX), a leader in the development of easy-to-use software that uses PC desktop systems to dramatically improve Internet access time without requiring additional hardware, today announced that that it has raised approximately $35 million in a private placement of its Series A Preferred Stock and Common Stock.
In March, MangoSoft raised $10 million through the sale of its Series A Preferred Stock at $4 per share, and subsequently raised approximately $25 million through the sale of its Common Stock at $5 per share. Of the $35 million raised, approximately $5 million remains subject to the completion of offering documentation.
Under the terms of the sale, the Preferred Stock will automatically convert to Common Stock upon completion of the Common Stock offering. After the issuance of the Common Stock, MangoSoft will have approximately 26,500,000 shares of Common Stock outstanding. MangoSoft has agreed to file a registration statement with the Securities and Exchange Commission by July 20, 2000 that covers shares sold in the offering.
The Company will use the proceeds from this offering for marketing and sales of its CacheLink product and other products under development, as well as for general working capital and other purposes. MangoSoft’s Common Stock currently trades on the OTC Bulletin Board. The Company is expected to apply to have its Common Stock traded on the NASDAQ Stock Market within the next several months.
“MangoSoft’s ability to attract this level of capital investment is evidence of the confidence our present and future products engender,” said Dale Vincent, CEO of MangoSoft. “With this funding, MangoSoft is well positioned to deliver our future Internet products and services, as well as aggressively move forward with the promotion and sales of CacheLink.”
CacheLink, MangoSoft’s software-based Web cache product, dramatically improves Internet and intranet performance by transparently linking the browser caches of computers on a company’s local network into a single large cache pool. The result is significantly decreased Internet access time and increased available bandwidth. CacheLink achieves this without requiring additional hardware or complicated system administration. CacheLink not only speeds up access to the Internet, but effectively reduces the costs associated with Internet access.