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InfoCast Raises $4.8 M

Chicago-based InfoCast Corporation, (OTC BB:IFCC) a Vertical Service Provider for the call center industry, announced today that it has received cash and commitments for $4.8 million in equity financing from Canadian and European-based investors.

"This is the first of a series of financing rounds that we have planned to strengthen our balance sheet and provide additional operational liquidity," said Jim Leech, president and CEO of InfoCast. "The funds received in this round will be applied to the deployment of our call center solution. We also intend to redeem the $1.25 million owing under the 7-percent subordinated convertible debenture issued to CALP II in late 2000."

Based on the funds and commitments received to date, InfoCast will issue 9.6 million common shares and 3-year warrants to acquire 4.8 million common shares at a price of $0.75 per share. InfoCast may accept additional subscriptions for this financing over the next week.

"This is a challenging environment for raising money and investors are being extremely selective with the investments they make," Leech said. "We are encouraged that these investors see the tremendous opportunity in our company. The fact that they have participated in this financing round is validation of our business plan."

The foundation of InfoCast's virtual call center solution is a complete customer contact center infrastructure available on a pay-per-call basis – an alternative to expensive, traditional call center hardware and software.

InfoCast also markets an e-learning application, a web-based portal that provides access to training and knowledge management resources specific to the call center industry.

Randy Scasny writes for Chicago.internet.com, part of the internet.com news network.