ROCHESTER, N.Y., June 24, 2004 (PRIMEZONE) -- Total Identity Corp ("TIC") (OTCBB:TIDC) announced today that it has received a $200,000 financing commitment to be issued in its newly created non-convertible Preferred Stock. The financing shall be received in four installments with the first prior to the end of the second quarter. The company intends on using the funds to pay down expenses at its plant in NY. TIC is also canceling one million shares of its issued and outstanding Common stock plus and option to purchase one million shares at $.20 per share.
The infusion of cash will enable Total Identity Group ("TIG"), TIC's wholly owned subsidiary, to reduce its payables and begin receiving vendor discounts it is not currently receiving. With the conversion of TIC debt being recorded in the second quarter and the infusion of additional capital TIC will have positive shareholder equity that would enable TIG to become bondable again. With bonding TIG can begin bidding on work that it has been unable to for the past two years. The Company has historically bid on $20 to $25 million dollars worth of business a year which has resulted in $2-$2.5 million in sales. The additional revenues would also produce approximately $400,000 in additional net income.
With this cancellation of one million shares of common stock, plus the previously announced cancellation of 1,050,000 shares of common stock, the total issued and outstanding TIC common shares will be 14,609,675. This is a 12.3% reduction in the number of issued an outstanding common shares. In addition, the option for an additional 1 million shares is cancelled further reducing dilution.
Matthew P. Dwyer, President of TIC, stated "TIC will use the cash to pay down debt at the plant and shore up the balance sheet to help the company receive discounts and secure bonding. With the reduction of another million shares and the cancellation of one million options this will help increase shareholder value and reduce dilution as the Company moves forward and seeks other acquisitions."
About TIC
TIC is developing opportunities within the $13 billion signage industry with the goal of becoming the place for corporate America to go for their custom sign needs. TIC initial plans are to acquire various plants located on the Eastern seaboard, giving TIC a strong presence along the East Coast through the Midwest. TIC is looking at various sign companies that will enable TIC to absorb their operations within its existing plant which has the capacity to generate $40 million a year in revenues by adding additional shifts.
Certain information contained in this news release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. While these statements are made to convey the company's progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management's opinion. Actual company results may differ materially from those described. The company's operations and business prospects are always subject to risk and uncertainties. A more extensive listing of risks and factors that may affect the business prospects of the company and cause actual results to differ materially from those described in the forward-looking statements can be found in the reports and other documents filed by the company with the Securities and Exchange Commission.
-0- Total Identity Corp. Matthew Dwyer 585-427-9050 www.totalidentity.com