(Source: PrimeNewswire)
NORCROSS, Ga., June 18, 2009 (GLOBE NEWSWIRE) -- Intelligent Systems Corporation (NYSE Amex:INS)(www.intelsys.com) announced today that the registration statement for its previously announced common stock rights offering was declared effective June 18, 2009 by the Securities and Exchange Commission. The Company also confirmed June 17, 2009 as the record date for the rights offering. Under the terms of the rights offering as described in the prospectus contained in the registration statement, Intelligent Systems will distribute at no charge to the holders of its common stock on the record date non-transferable rights to purchase an aggregate of 4,478,971 shares of common stock of the Company. Each record holder will receive rights to purchase one share of the Company's common stock for every share of common stock owned by such holder on the record date. In addition, stockholders as of the record date will be entitled to subscribe, subject to allotment among all subscribing shareholders, for up to 500,000 additional shares not subscribed for by other shareholders. The subscription price is $0.70 per share.
Rights offering materials, including a prospectus and other items necessary to exercise the rights, will be mailed on or about June 22, 2009 to eligible stockholders. The prospectus will contain important information about the rights offering, and stockholders are urged to read the prospectus carefully when available. Questions from stockholders about the rights offering or requests for additional copies of the prospectus or other offering materials may be directed to the information agent for the rights offering, Morrow & Co., LLC, at 470 West Avenue, Stamford, CT 06902, telephone (800) 607-0088 or (203) 658-9400.
The Company intends to use the proceeds of the rights offering primarily to support plans for its CoreCard subsidiary, including increasing marketing and sales activities and devoting additional resources to establish CoreCard's prepaid and credit card processing services.
Some members of the management team and board of directors of the Company have indicated that they intend to participate in the rights offering. One of the largest stockholders and Chief Executive Officer, J. Leland Strange, has advised the Company that he intends to participate to the full extent of his basic subscription right and may exercise his over-subscription right to some lesser extent, but he is not obligated to do so.
The subscription rights will be exercisable until 5:00 p.m. Eastern Daylight Time on July 17, 2009, unless the Company extends the rights offering. The Company reserves the right to cancel or terminate the rights offering at any time prior to the expiration date of the rights offering.
