By Sheri Kasprzak
Atlanta, Feb. 3 - GigaBeam Corp. said it has closed a private placement of notes for $2.5 million.
The company sold 8% senior notes due Jan. 28, 2008. The notes are convertible into common shares at $8 each beginning April 1.
Half of the interest is payable in cash semi-annually beginning July 31 and the remainder is payable on the earlier of maturity or conversion in cash or shares at the lesser of $10 each or the volume weighted average per-share price 10 days ending five business days before the interest payment is due.
The investors will also receive warrants for a total of 446,429 shares at $7 each exercisable from April 1 through Jan. 28, 2011.
Based in Herndon, Va., GigaBeam is a wireless communications company. It plans to use the proceeds from the private placement to fund its accounts receivable and component and product inventory and to deploy its products.
| Issuer: | GigaBeam Corp.
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| Issue: | Senior notes
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| Amount: | $2.5 million
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| Maturity: | Jan. 28, 2008
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| Coupon: | 8%
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| Price: | Par
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| Yield: | 8%
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| Conversion price: | $8.00
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| Warrants: | For 446,429 shares
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| Warrant expiration: | Jan. 28, 2011
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| Warrant strike price: | $7.00
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| Settlement date: | Jan. 28
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| Stock price: | $7.05 at close Jan. 28
|
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