By Sheri Kasprzak
New York, May 24 - GigaBeam Corp. concluded a $1 million private placement of secured debentures.
Midsummer Investment, Ltd. bought the 14% debentures, which are due the earlier of May 22, 2008 or upon the completion of a $2 million financing.
The investor also received warrants for 326,787 shares, exercisable at $6.40 each through May 22, 2012.
The offering was conducted to repay a short-term 14% secured promissory note in principal of $500,000 issued in April. The rest will be used for working capital.
GigaBeam, based in Herndon, Va., designs point-to-point wireless communications products for commercial and government clients.
| Issuer: | GigaBeam Corp.
|
| Issue: | Secured debentures
|
| Amount: | $1 million
|
| Maturity: | May 22, 2008 or upon the completion of $2 million financing
|
| Coupon: | 14%
|
| Price: | Par
|
| Yield: | 14%
|
| Warrants: | For 326,787 shares
|
| Warrant expiration: | May 22, 2012
|
| Warrant strike price: | $6.40
|
| Investor: | Midsummer Investment, Ltd.
|
| Settlement date: | May 22
|
| Stock symbol: | Nasdaq: GGBM
|
| Stock price: | $2.96 at close May 22
|
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