SAN FRANCISCO (March 9, 2004) – Critical Path, Inc. (Nasdaq: CPTH), a global provider of digital communications software and services, today announced that it has signed definitive agreements for the purchase of a total of $18.5 million in convertible notes. Investment entities affiliated with Crosslink Capital, Criterion Capital Management and Heights Capital Management have made new investments in the Company and entities affiliated with Apex Capital, which had invested in the Company in January 2004, have invested again.
The investments consist of 10% senior secured notes, which will convert into approximately 12.3 million shares of Series E preferred stock, at $1.50 per share, upon shareholder approval. As previously announced by the Company, the Series E preferred shares will rank senior in preference to all existing equity shares of the Company. The preferred shares will accrue dividends at an annual rate of 5 ¾% of the purchase price. The Company plans to submit the issuance of these shares to shareholders for approval in the first half of 2004, in accordance with the rules of the Nasdaq Stock Market.
These investments are made on substantially the same terms as and are separate from – and in addition to – the $15 million in capital raised by the Company in January 2004 and the $10 million raised in November 2003, bringing the total raised in the past four months to $43.5 million. The securities have not been registered under the Securities Act of 1933, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
About Critical Path, Inc.
Critical Path, Inc. (Nasdaq: CPTH) is a global provider of digital communications software and services, headquartered in San Francisco. More information is available at www.criticalpath.net.