Company sells units at $2.75 apiece; proceeds used for working capital
By Devika Patel
Knoxville, Tenn., Nov. 30 - Orckit Communications Ltd. orchestrated a registered direct offering of units, according to a prospectus supplement filed Tuesday with the Securities and Exchange Commission. It will raise $8.38 million by Dec. 3.
The company will sell 3,045,452 units of one common share and 0.6 warrants at $2.75 apiece.
Each whole warrant is exercisable at $3.50 for five years. The strike price reflects a 6.71% premium to the Nov. 29 closing share price of $3.28.
Cowen and Co., Roth Capital Partners and Merriman Capital are the agents.
Proceeds will be used for working capital and other general corporate purposes.
Orckit, is a Tel-Aviv, Israel-based maker of broadband telecommunications equipment.
| Issuer: | Orckit Communications Ltd.
|
| Issue: | Units of one common share and 0.6 warrants
|
| Amount: | $8,374,993
|
| Units: | 3,045,452
|
| Price: | $2.75
|
| Warrants: | 0.6 warrants per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $3.50
|
| Agents: | Cowen and Co., Roth Capital Partners and Merriman Capital
|
| Pricing date: | Nov. 30
|
| Settlement date: | Dec. 3
|
| Stock symbol: | Nasdaq: ORCT
|
| Stock price: | $2.68 at close Nov. 30
|
| Market capitalization: | $52.47 million
|
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