Catuity Terminates Rights Offering Due to Volatility of Global Markets
DETROIT, Aug. 7, 2002–Catuity, Inc. (NASDAQ: CTTY; ASX: CAT), a leading provider of real-time recognition and reward software solutions, today announced that as a result of the volatility of global stock markets, the company and its underwriters in Australia have terminated the one-for-eight renounceable Rights Offering announced on June 27, 2002.
The offering was planned to raise AUD $5.3 million (U.S. $3 million) to enable the company to pursue a new area of data aggregation and data analytics as part of a CRM (Customer Relationship Management) market strategy.
The termination of the Rights Offer does not materially affect the Company’s existing business and the cash position remains strong. Michael V. Howe, president and chief executive officer, said “We continue to achieve new milestones in our existing business. We are nearing the launch of the Catuity system as part of the smartVisa program with major retailers in North America later this year. In the U.S. we continue to receive increased interest in our system from major retailers, who are recognizing the marketing benefits that loyalty programs can provide.
“The CRM market strategy is a logical extension of the Company’s business that can support and enhance growth for our loyalty software in the U.S. market and facilitate the expansion of loyalty and CRM services to card issuers and retailers. Although the global stock market conditions are forcing us to delay our entry into the data aggregation and analytics market, we have not incurred any significant costs in this area and we continue to look at opportunities.”
The rights offering applied only to Australian and New Zealand resident shareholders. Any person who acquired rights who wishes to take up shares in accordance with the Rights Offer should contact the Company. All subscriptions received will be returned to subscribers. About Catuity, Inc.
Catuity, Inc. is a leading provider of application software that allows merchants, transaction processors and payment card issuers to establish and administer customer incentive and loyalty programs integrated to the payment system at the point of sale. Catuity Loyalty Software can be used by a broad range of sellers of goods and services, particularly those who sell through both store locations and over the Internet. Catuity’s software has been included on millions of credit, charge and debit cards, and works on magnetic stripe or chip or “smart” cards. With Catuity’s loyalty solution, merchants can offer their customers valuable benefits, thereby attracting and retaining customers as well as encouraging increased purchases. More information on Catuity is available at its website: http://www.catuity.com.
In conjunction with the provisions of the “Safe Harbor” section of the Private Securities Litigation Reform Act of 1995, this release may contain forward-looking statements pertaining to future anticipated projected plans, performance and developments, as well as other statements relating to future operations. All such forward-looking statements are necessarily only estimates of future results and there can be no assurance that actual results will not materially differ from expectations. Further information on potential factors that could affect Catuity, Inc. is included in the Company’s Form 10-K, which is filed with the U.S. Securities & Exchange Commission.
CONTACT: Catuity, Jack Lowry, 313/567-4348 or Martin E. Janis & Company, Inc. Bev Jedynak, 312/943-1100 ext. 12