Carver Announces Interim Financing and New Director

On April 7, Carver Corp. announced an agreement in principle for the sale of 3 million shares of restricted Common Stock of the company to one of its preferred shareholders, Renwick Special Situations Fund, L.P., for $375,000, or $0.125 per share.

According to a Carver press release, this capital infusion will provide the company with funds for its short-term working capital needs while the company implements a new business plan, the details of which will be announced next month.

The company also announced that its board has appointed Clifford J. Schorer, Jr. to fill a vacancy as an independent director on the board, and has also appointed Schorer to serve on the company's Audit Committee. Schorer will fill a vacancy resulting from recent resignations from the board, as reported in an earlier story. Carver Corp. anticipates that it will announce the appointment of a second independent director in the near future.

Carver Corp. also announced that Nasdaq has advised the company that it does not meet Nasdaq's new $5 million minimum public float and $1 dollar minimum bid price requirements. Nasdaq has granted the company an extension until May 28, 1998 to satisfy these requirements. The inability of the company to comply with these listing requirements could result in the delisting of the company's stock from Nasdaq.

Carver had announced that it must obtain additional working capital to meet its ongoing needs. According to its statement: "The exact amount of additional working capital required by the company, and the timing of the need for such capital, will be determined by numerous factors which could be significantly affected by the implementation of a new business plan including: The extent to which the company is able to negotiate more favorable payment terms with the company's suppliers and customers; the timing of, level of, and margin on sales to the company's suppliers and customers; the company's ability to revise currently outstanding purchase orders; and the amount of resources available for product development and other operating expenses. The company is actively seeking additional working capital from a variety of sources."