By Sheri Kasprzak
New York, Nov. 8 - GigaBeam Corp. said it completed a private placement of series B convertible preferred stock for $18.9 million.
The company issued 18,900 shares of the preferreds at $1,000 each.
The preferreds are convertible into common shares at $7.62 each and pay dividends initially at 8% annually. The dividends increase to 11% in the third year and to 14% in the fourth year.
The institutional investors participating in the offering also received warrants for 1,302,200 common shares, exercisable at $7.9827 each for five years.
The proceeds will be used for working capital and general corporate purposes.
Based in Herndon, Va., GigaBeam provides point-to-point wireless communications systems.
| Issuer: | GigaBeam Corp.
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| Issue: | Series B convertible preferred stock
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| Amount: | $18.9 million
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| Shares: | 18,900
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| Price: | $1,000
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| Dividends: | 8%, initially; 11% in the third year; 14% for the fourth year and thereafter
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| Conversion price: | $7.62
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| Warrants: | For 1,302,200 shares
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| Warrant strike price: | $7.9827
|
| Warrant expiration: | Five years
|
| Settlement date: | Nov. 8
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| Stock price: | $7.25 at close Nov. 7
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