By Devika Patel
Knoxville, Tenn., Oct. 2 - Emcore Corp. gave further details on a $25 million two-year committed equity financing facility in an 8-K filed Friday with the Securities and Exchange Commission. The deal priced on Oct. 1.
The company may sell up to 15,971,169 shares to Commerce Court Small Cap Value Fund, Ltd. in up to 24 tranches at a 5% discount to market prices.
Commerce also received three warrants for a total of 1.6 million shares, which expire on April 1, 2015. The first warrant, for 666,667 shares, is exercisable at $1.69. The second warrant, for 666,667 shares, is exercisable at $2.02. The third warrant, for 266,666 shares, is exercisable at $2.36.
Proceeds will be used for general corporate purposes, which may include new product development, capital expenditures and increases in working capital.
Based in Albuquerque, N.M., Emcore is a provider of compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite and solar power markets.
| Issuer: | Emcore Corp.
|
| Issue: | Committed equity financing facility
|
| Amount: | $25 million
|
| Tenor: | Two years
|
| Price: | 95%
|
| Warrants: | For 1.6 million shares
|
| Warrant expiration: | April 1, 2015
|
| Warrant strike price: | $1.69 (for 666,667 shares), $2.02 (for 666,667 shares), $2.36 (for 266,666 shares)
|
| Investor: | Commerce Court Small Cap Value Fund, Ltd.
|
| Settlement date: | Oct. 1
|
| Stock symbol: | Nasdaq: EMKR
|
| Stock price: | $1.23 at close Oct. 1
|
| Market capitalization: | $99.3 million
|
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