Axcess gets funding, workers back on payroll
February 13, 2003
CARROLLTON, Texas - Three months after placing its workers on furlough, asset tracking and digital video products manufacturer Axcess Inc. secured an undisclosed round of funding to resume operations.
The announcement likely came as welcome news to AxcessÃ¢â‚¬â„¢ employees, many of whom continued with the company without pay while it sought funding. Of the 20 furloughed employees, only one person left the company.
"We were able to get the experienced staff back and I think thatÃ¢â‚¬â„¢s a real testament to the belief in the company and the technology," said Allan Griebenow, president and chief executive officer of Axcess.
Griebenow described the funding as a three-tier process. The first involves convertible debt, an option that allows investors the opportunity to own equity in the company but at the same time does not dilute existing shareholder value. The second involved additional support from venture capital firm VennWorks, while the last piece of the funding will be an additional public offering of stock when the financing climate is ripe.
Further details of the recent round of funding, such as the amount secured, are expected to be filed with the Securities and Exchange Commission.
Signs of financial woes for Axcess began in early 2002, when it downsized its staff and decreased marketing and advertising. In documents filed with the SEC in 2002, Axcess said it did not anticipate current funding would sustain the company through the year.
Now with new funding and its workforce back on payroll, officials at Axcess plan to work down its backlog.
Griebenow characterized any interruptions at the company as minor. "The only real impact to us was the availability of working capital to build and ship product in a timely fashion," he said. "WeÃ¢â‚¬â„¢re now working our way back to a more optimal mode."