Raises Additional Financing in Convertible Debt Financing
VANCOUVER, British Columbia, June 19 /CNW/ -- GPS Industries, Inc. (GPSI)
(OTC Bulletin Board: GPSN), the only provider of Wi-Fi powered, advertising
enhanced GPS systems for golf facilities, resorts and residential communities,
announces that it has appointed David Chessler as Chief Executive Officer
effective June 16, 2008 and has significantly improved the liquidity of the
Company as part of our re-financing plan.
Appointment of David Chessler as CEO
Mr. Chessler was appointed as Chief Executive Officer of the Company
effective June 16, 2008. Mr. Chessler is a key component of the company's
restructuring plan. "David's experience in this industry, his success in
asset based lending and his management skills identified him as the ideal
choice for the company's CEO," said Company Director, Bart Collins. Mr.
Chessler has also been elected to the Company's Board of Directors.
David Chessler, former CEO of Parview, is a seasoned veteran in the GPS
golf business with several years of experience in various management and
executive capacities in the industry. He has taken companies from start-up to
sale during the period 1991 to 2002, having been awarded the Florida Ernst &
Young Entrepreneur of the year award in 2000.
"Having been involved in the GPS golf industry for 14 years, I'm very
excited to join the GPSI team. I believe the company has the best products,
patent portfolio and now the appropriate capital structure required to achieve
its full potential. I look forward to working with the GPSI team to become
the dominant player in this market," said David Chessler.
GPSI is pleased to announce that it has closed the next phase of its
recapitalization plan by issuing a $5.5 million convertible note to Tulip
Group Investments, Ltd ("Tulip"). The note is convertible into both newly
authorized Series C Preferred Stock Shares at $10.00 per share and common
stock shares at $0.031 per share yielding 177.4 million common stock shares.
GPSI also issued warrants to Tulip to purchase up to 22.5 million common stock
shares at $0.12 which expire in May of 2012. When combined with the $3.5
million recently infused into GPSI via an expanded bank line provided by
Silicon Valley Bank (SVB) and guaranteed by Great White Shark Enterprises
(GWSE), the total new financing available to GPSI is $9.0 million.
As a follow up, GPSI, GWSE and the Estate of Douglas Wood have agreed in
principal to convert approximately $3.4 million of short term liabilities due
to both GWSE and the Estate of Douglas Wood into 3 year Notes accruing
interest at 7% with interest and principal due on maturity. Additionally,
both guarantors of the initial $3.0 million of the SVB credit line (Hansen
Inc. and the Estate of Douglas Wood) have agreed to extend their guarantees
for a period of 3 years.
In connection with the above transactions, the Board of Directors of GPSI
has approved increasing the authorized number of common shares by 900 million
to 2.5 billion and the creation of the Series C Preferred Shares all of which
will be submitted to shareholders for approval as soon as possible.
"The combination of the company's recapitalization and the appointment of
David Chessler as CEO has positioned GPSI to realize its full potential," said
About GPS Industries, Inc.
GPS Industries, Inc. (GPSI) develops and markets GPS and Wi-Fi multimedia
solutions to enable managers of golf facilities, resorts, and residential
communities to improve operational efficiencies and generate new revenue
streams. The Company's Inforemer(R) Management Solutions product line provides
integrated software applications and high-resolution cart mounted display
panels that vividly illustrate each hole, providing precise distance
measurement information, strategic playing tips and targeted advertising
messages to the golfer while enabling the course with state-of-the-art
management capabilities such as cart tracking, food and beverage service, and
tournament sponsorships. The patented system is seamlessly connected via a
high-speed Wi-Fi network that enables the entire facility into a wireless hot
spot. GPSI now has an installed base of over 320 active course installations
worldwide. For additional information, please visit
Some statements contained in this release may be forward-looking within
the meaning of the Private Securities Litigation Reform Act of 1995. Editors
and investors are cautioned that such forward-looking statements involve risks
and uncertainties that may cause the company's actual results to differ
materially from such forward-looking statements. These risks and uncertainties
include, but are not limited to, the company's ability to generate revenues
and other factors as described in the Company's literature and filings with
the Securities and Exchange Commission.
For further information:
For further information: Joe Miller, Chief Financial Officer of GPS
Industries, Inc., +1-604-576-7442, Joe.email@example.com Web Site: