News release |
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Zi reprices and extends exercise date of outstanding warrants
CALGARY, AB (December 18, 2001) - Zi Corporation (NASDAQ: ZICA) (TSE: ZIC), a leading provider of intelligent interface solutions, today announced that it has reduced the exercise price of all of the company's 1,482,233 outstanding share purchase warrants ("warrants") to US$7.00 per common share, and extended the expiry date to December 29, 2002.
Additionally, all outstanding warrants will automatically expire, unless exercised, 30 days following the period in which the twenty day weighted average trading price of the company's common shares on the Toronto Stock Exchange exceeds the Canadian dollar equivalent of US$8.23 per common share. The Toronto Stock Exchange has accepted notice of the extension and re-pricing under the terms contained herein.
Issued during private placements that took place in December 1999 and February 2000, these warrants are held by third-party investors at arms length to the company.
"Due to current market conditions, re-pricing and extending the expiration period of our warrants is a way to show our commitment to those involved in our private placements," said Dale Kearns, Chief Financial Officer of Zi Corporation. "Zi is well-capitalized with no debt and over $32 million in funds. This extension and re-pricing provides the opportunity for warrants to be exercised at a greater than 30 per cent premium to the market price on the date of Board approval."
Prior to this amendment, the company had outstanding (i) 394,737 and 131,250 warrants to acquire one common share per warrant at US$23 per common share expiring on December 29, and December 30, 2001, respectively, and (ii) 487,497; 56,250;and 412,499 warrants to acquire one common share per warrant at US$24.50 per common share expiring on February 2, February 8 and February 9, 2002, respectively.
About Zi Corporation
Zi Corporation is a market-driven technology company delivering intelligent interface solutions to enhance the user experience of wireless and consumer technologies. The company's core technology product, eZiText™ connects people to short messaging, e-mail, e-commerce, Web browsing and similar applications in almost any written language. Zi Services provides market-leading engineering design in Bluetooth, VoIP and man-machine interface. Zi supports its strategic partners from offices in Calgary, Beijing, Hong Kong, San Francisco, Shenzhen, Stockholm and Tokyo. A publicly traded company, Zi Corporation is listed on the NASDAQ National Market (ZICA) and the Toronto Stock Exchange (ZIC).
Unless otherwise stated, all funds are in Canadian currency.
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For more information:
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Media Inquiries: Shawn Kelly Zi Corporation Corporate Communications Manager Phone: 403 537 9770 E-mail: skelly@zicorp.com Website: www.zicorp.com |
Investor Inquiries: Dale Kearns Zi Corporation Chief Financial Officer Phone: 403 233 8875 E-mail: investor@zicorp.com Website: www.zicorp.com |