By Sheri Kasprzak
New York, Aug. 21 - GigaBeam Corp. concluded a $10 million private placement of series C convertible preferred stock.
The company sold 10,000 shares of the preferred stock at $1,000 each to a group of institutional investors. The preferreds are convertible into common shares at $6.10 each and pay annual dividends initially at 8%. The rate of dividends increases to 11% at the third anniversary and again to 14% after the fourth anniversary.
The company may redeem the preferreds at any time within the first three years.
The investors also received warrants for 860,653 shares, exercisable at $6.39 each.
Proceeds will be used for working capital and general corporate purposes.
GigaBeam, based in Herndon, Va., provides wireless point-to-point communications based on radio frequencies.
| Issuer: | GigaBeam Corp.
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| Issue: | Series C convertible preferreds
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| Amount: | $10 million
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| Shares: | 10,000
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| Price: | $1,000
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| Conversion price: | $6.10
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| Dividends: | 8%, initially
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| Warrants: | For 860,653 shares
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| Warrant strike price: | $6.39
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| Settlement date: | Aug. 21
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| Stock symbol: | OTCBB: GGBM
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| Stock price: | $5.75 at close Aug. 21
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