By Sheri Kasprzak
Atlanta, Dec. 28 - Ambient Corp. said it closed a private placement of convertible debentures for $4.9 million.
The company issued the three-year 6% convertible debentures to institutional and individual investors.
The debentures are convertible into common shares at an initial price of $0.25 each. Unless converted earlier, the debentures will automatically convert on the third anniversary of issuance.
Investors in the offering also received warrants for 2.2 million shares at $0.50 each.
Based in Boston, Ambient designs, develops and markets equipment and technologies that use electrical power medium-voltage and low-voltage distribution lines for broadband services. The proceeds from the deal will be used for the company's commercialization efforts and working capital.
| Issuer: | Ambient Corp.
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| Issue: | Convertible debentures
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| Amount: | $5.5 million
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| Maturity: | Three years
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| Coupon: | 6%
|
| Price: | Par
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| Yield: | 6%
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| Conversion price: | $0.25
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| Call: | Debentures automatically convert after three years
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| Warrants: | For 2.2 million shares
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| Warrant expiration: | Three years
|
| Warrant strike price: | $0.50
|
| Settlement date: | Dec. 23
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| Stock price: | $0.34 at close Dec. 23
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