SOURCE: ProMana Solutions, Inc.

February 08, 2006 12:43 ET

ProMana Solutions Board Approves the Authorized Issuance of up to $1,500,000 of Series A Convertible Preferred Stock

PARSIPPANY, NJ -- (MARKET WIRE) -- February 8, 2006 --ProMana Solutions, Inc. (OTC: PSLU), a provider of end-to-end Internet based software solutions for business work flow and human resource management, announced today that its Board of Directors has authorized the issuance of up to $1,500,000 of Series A Convertible Preferred stock to a select group of private investors. Of the $1,500,000 offering, a group of private investors has committed over $500,000 to ProMana Solutions to date.

Under the general terms of the issuance the Series A Convertible preferred stock will carry an annual interest rate of 12.5% and is paid in either cash or common stock at the holders discretion. The shareholders can elect to convert their shares at the end of four years into common stock, or redeem their shares for 125% of their original investment.

Larry Kass, President and CEO of ProMana Solutions, Inc., commented, "The last several months have been a struggle for us from a financial point of view. We never ceased our quest for new sales opportunities; however, since we did not have the liquid capital to support new clients, or to demonstrate the necessary reliability for prospective clients to entrust their entire back office processing to us on a long-term basis, we got caught up in a difficult spiral. This new infusion of capital will provide us with the necessary tools to support our current operations, and to demonstrate to our prospective clients that we are here to stay for the long haul, and to grow into a major play in the HR, Payroll, and BPO Outsourcing market."

"The group of accredited investors, that purchased the Series A Convertible shares represents more then just money." Mr. Kass further commented, "These investors are looking to play an active roll in helping us develop new sources of business and grow the company over the next several years and beyond. They are long-term investors and were specifically approached because of the areas of expertise and businesses acclimate. We look forward to their active participation."

About ProMana Solutions

ProMana Solutions (OTC: PSLU) offers web-native software solutions to small and medium sized companies worldwide. Its flagship product manages the entire spectrum of administration, accounting, payroll, benefits, human resources and a host of other functions for clients. The company's open architecture utilizes only Web server applications that integrate easily into clients' existing operating platforms and provide a strong value proposition of cost savings for end users. PSLU shareholders are encouraged to visit www.promanasolutions.com for more information and to register on the "Investor Relations" page to receive ongoing ProMana news updates.

Legal Notice Regarding Forward-Looking Statements: "Forward-looking statements'' as defined in the Private Securities Litigation Reform Act of 1995 may be included in this news release. These statements relate to future events or our future financial performance. These statements are only predictions and may differ materially from actual future results or events. PSLU disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. There are important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to risks associated with changes in general economic and business conditions (including in the information technology and financial information industry), actions of our competitors, the extent to which we are able to develop new services and markets for our services, the time and expense involved in such development activities, the level of demand and market acceptance of our services, and changes in our business strategies.

Contact Information

  • Contact:
    ProMana Solutions, Inc.
    (212) 338-0001