Vanguard Airlines Proceeds with Equity Investment
KANSAS CITY, Mo., June 25 /PRNewswire/ -- Vanguard Airlines, Inc. (Nasdaq: VNGD - news) today announced that it is has satisfied certain conditions to closing of the previously announced equity investment in the Company. The Company's Board of Directors has approved the investment and NASDAQ has granted the Company an exemption to its marketplace rules allowing the Company to proceed with the transaction without shareholder approval.
As announced on May 1, 2001, a group of existing shareholders of the Company are investing up to $7.5 million in the Company in exchange for newly-issued shares of common stock, at a per share acquisition price of $0.20. NASDAQ granted the exemption due to the Company's critical need for funding to remain financially solvent. The Company had represented to NASDAQ that, without this funding, the Company would have been required to file for reorganization under Chapter 11 of the Bankruptcy Code.
http://biz.yahoo.com/prnews/010625/cgm030.html
