By Devika Patel
Knoxville, Tenn., Nov. 24 - Ambient Corp. raised another $8 million in an additional tranche of a private placement of senior secured convertible promissory notes with Vicis Capital Master Fund, bringing the total proceeds of the deal to $20.5 million. The company raised $7.5 million on July 31, 2007 and another $2.5 million on Nov. 2, 2007. It took in $2.5 million on Jan. 16.
In order to sell these notes to Vicis, the company amended the original agreement, and also removed all conversion caps from the warrants issued in this deal, in consideration for the added investment. The notes' conversion price also was reduced to $0.015 per share from $0.035 per share.
The 8% notes mature in three years.
The notes will be redeemable at 110% of principal and interest under certain change-of-control transactions and are redeemable at 120% of principal and interest upon other triggering events.
Vicis received warrants for 150 million shares.
Of the warrants from the first tranche, 50 million are exercisable at $0.06 each and 100 million at $0.075 each. The warrants are exercisable beginning the earlier of the first anniversary of issuance and the effectiveness of the registration statement through July 31, 2012.
Proceeds will be used to repay debt.
Located in Newton, Mass, Ambient develops broadband-over-power-lines technologies and services.
| Issuer: | Ambient Corp.
|
| Issue: | Senior secured convertible promissory notes
|
| Amount: | $20.5 million
|
| Maturity: | Three years
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | $0.015
|
| Call: | At 110% of par plus interest under change-of-control transactions; at 120% of par plus interest upon other triggering events
|
| Warrants: | For 150 million shares (in first tranche)
|
| Warrant expiration: | July 31, 2012
|
| Warrant strike price: | $0.06 for 50 million shares; $0.075 for 100 million shares
|
| Investor: | Vicis Capital Master Fund
|
| Settlement date: | July 31 (for $7.5 million); Nov. 2 (for $2.5 million), Jan. 16 (for $2.5 million), Nov. 24 (for $8 million)
|
| Revised: | Nov. 24
|
| Stock symbol: | OTCBB: ABTG
|
| Stock price: | $0.064 at close July 31
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
