Communication Intelligence Corp. Seeks Chapter 11 Protection for Shareholders
REDWOOD SHORES, Calif. — July 18, 1994 — Communication Intelligence Corp. (NASDAQ:CICI) announced Monday that it had filed under Chapter 11 with the primary purposes of restructuring the company, reorganizing its debt, and of protecting shareholder equity.
CIC has had difficulty in arranging a planned round of financing, thus leaving the rapidly growing company in need of cash.
James Dao, chairman and chief executive officer of CIC said, "The Chapter 11 filing will allow us to restructure the company for greater efficiency, and to work with our creditors while maintaining normal business operations.
"To date, over 12,000 of our revolutionary new Handwriter products for desktop pen computing have been installed. At the same time, our software licensees are beginning to ship powerful, economical second generation products for the portable and mobile computing markets.
"CIC's main problem," he continued, "is that, due to the very tight capital situation that exists around the world, a scheduled round of financing has been more difficult to close than was anticipated. High technology companies are suffering from this lack of capital everywhere."
CIC continues to negotiate with a number of financial entities to complete its necessary funding. The company has not drafted its reorganization plan but expects to develop a plan for recovery and to exit the chapter 11 and to continue its growth.
Note to Editors: Company and product names used herein are trademarks or registered trademarks of their respective companies.
CONTACT:
Communication Intelligence Corp.
Maurice Boucher, 604/689-8588 (investor relations)
Beverly Scott, 415/802-7754 (communications)