NEWPORT BEACH, Calif., May 9, 2007 (PRIME NEWSWIRE) -- World Am, Inc. (OTCBB:WDAM) today reported that it has completed a private placement, effective May 2, 2007, netting the company $3,000,000. When added to the $850,000 in an earlier private placement that ended January 18, 2007, the total raised over the past seven months from accredited investors amounts to $3,850,000.
Between November 12, 2006 and January 18, 2007, the company sold a total of 31 units to a total of 18 investors, each unit consisting of 5,000,000 restricted shares of common stock (for a total of 155,000,000 shares of common stock) and a warrant to purchase 1,250,000 restricted shares of common stock (exercisable for a period of three years at $0.02 per share), for a total consideration of $850,000.
Between April 5, 2007 and May 7, 2007, the company sold a total of 30 units to a total of 19 investors in a private offering, each unit consisting of 12,500,000 shares of common stock (for a total of 375,000,000 shares of common stock) and a warrant to purchase 3,125,000 shares of common stock (exercisable for a period of three years at $0.02 per share). The total consideration for these sales was $3,000,000.
"These private placements achieve two important goals for World Am," said Chairman & CEO Robert A. Hovee. "They not only raised money for the company to execute on its business plan, they also gained the support of some very learned people who recognize the long range potential of World Am, and were willing to make an investment in it and accept restricted stock as their commitment to the future of the company."
World Am has two operating subsidiaries, Senz-It and Isotec. Senz-It represents an innovative advancement in the field of micro-sensors that have applications in Homeland Security, indoor air quality monitoring, food processing and health care. Its potential products are intended to compete in the developing field of real-time detection and notification devices. Senz-It is being designed to identify patterns of molecules present in liquid, blood and air environments for significantly less cost than current approaches.
Senz-It's sister subsidiary is Isotec, whose solutions provide "Protection, not just Detection." It develops, integrates and supplies passage control security products broadly categorized as access control, weapons control, or materials control systems that rigorously control entry or exit of people and materials into and/or out of a facility, while reducing the need for security personnel. Applications of the technology have been delivered to the commercial, retail and government sectors. Isotec's experience in this field allows it to provide high quality, code compliant, application-optimized solutions at the lowest cost in the shortest timeframe.
Additional information on the company is available at http://www.world-am.com/.
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above. The company cautions that these forward looking statements are further qualified by other factors including, but not limited to those, set forth in the World Am, Inc. Form 10-KSB filing and other filings with the United States Securities and Exchange Commission (available at www.sec.gov). The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.