By Sheri Kasprzak
Atlanta, Dec. 15 - American Technology Corp. said Wednesday it has received $25 million in a committed equity financing facility.
Kingsbridge Capital Ltd. will provide the line over two years, during which time the company may draw upon the facility at the lesser of 3% of the company's market capitalization or $10 million.
The purchase installments will be priced during 15-day periods with the company controlling the minimum acceptable purchase price for shares issued to Kingsbridge. The purchase price of the shares has a floor of $3.
Kingsbridge will buy shares at discounts from 8% to 12% of the volume weighted average market price during the two-year financing period, with the reduced discount applying if the price of the stock is greater than $10.
Kingsbridge may not short sell any of the company's shares, according to the terms of the agreement.
American Technology also issued warrants for an additional 275,000 shares at $8.60 each for five years.
On Wednesday, the company also announced that it has entered into a one-year consulting agreement with Flagstone Securities Inc., which arranged the agreement with Kingsbridge.
Based in San Diego, American Technology develops, manufactures and distributes proprietary sound technologies and products.
| Issuer: | American Technology Corp.
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| Issue: | Committed equity financing facility
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| Amount: | $25 million
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| Tenor: | Two years
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| Price: | Discount of 8% to 12% of the volume weighted average market price
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| Warrants: | For 275,000 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $8.60
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| Financial advisor: | Flagstone Securities Inc.
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| Investor: | Kingsbridge Capital Ltd.
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| Pricing date: | Dec. 15
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| Stock price: | $7.50 at close Dec. 15
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