CANTON. Ga., March 14, 2011 (GLOBE NEWSWIRE) -- GBS Enterprises, Inc. (OTCBB:GBSX) announced today the Company has completed its private placement equity offering totaling $7,367,500. The unit offering consisted of one share and one warrant. The offering was 47% oversubscribed. Post funding the Company now has 20,394,000 common shares issued and outstanding.
Joerg Ott, the Company's CEO, stated, "The response to our capital raise underscores the value of the Cloud Automation Platform (the "CAP") and Evolution Transformer technologies the company has developed."
The Company will use the proceeds of the offering to continue its technology investment in the CAP, expand technical staff and proceed with additional acquisitions they have identified in the Lotus marketplace.
The Company's majority owned subsidiary, Group Business Solutions ("GROUP") is the world's largest provider of business applications for the Lotus market and has previously acquired over 24 companies in the U.S. and Europe. GROUP has more than 3,500 customers in 38 countries spanning 4 continents.
Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors.
CONTACT: Gary MacDonald EVP and Chief Corporate Development Officer GBS Enterprises, Incorporated +1.917.477.9509 gmacdonald@gbsx.us
