Exhibit 99.1
TERAGLOBAL TO EXPLORE FINANCING OPTIONS
SAN DIEGO--(BUSINESS WIRE)--January 15, 2001--TeraGlobal Communications Corp. (OTC BB: TGCC) announced today that it is exploring alternatives for financing the Company's ongoing operations.
The Company reported a need for additional capital in its third quarter report to shareholders. The Company also reported at that time that it had entered into a term sheet with an investment banker to provide additional capital through a private placement of securities that was scheduled to commence in January 2002.
On December 21, 2001, the Company announced that it had received $750,000 in a bridge financing round. The funds were secured through a private placement of convertible promissory notes and warrants. The proceeds from that bridge financing were necessary to fund the Company's operations through the January financing round.
The Company has received notice that its investment banker is withdrawing from the term sheet and the January financing round. The Company will require additional capital in order to continue operations, but has no firm commitments for financing at this time.
The investment banker's withdrawal from the term sheet has caused certain Default Warrants issued in connection with the bridge financing to vest, granting the ...
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