Sun acquires Ancor warrant
WASHINGTON, June 14 (Reuters) - Network computing products maker Sun
Microsystems Inc. said Monday it acquired a warrant in Ancor Communications Inc.
which may be exercisable for up to 1.5 million common shares, or 5.9 percent of
Ancor.
Sun acquired the warrant, dated June 2, for investment purposes, it said in a filing
with the Securities and Exchange Commission.
Under the warrant, each Ancor share becomes exercisable at the rate of one share
for every $67 of net revenues billed by Ancor to Sun for the purchase or license of
certain products by Sun from Ancor, the filing said.
That is provided, however, that no shares shall vest until the amount of net
revenues billed by Ancor to Sun equals or exceeds $10 million, the filing said.
Minnesota-based Ancor makes Fibre Channel communications network products,
including switches, interface adapters and integrated circuits.
The warrant is exercisable upon a vesting schedule. Sun, based in Palo Alto, Calif.,
shall pay $7.30 per share to buy the shares using its general working capital, the
filing said.
Sun said it presently hold no shares of Ancor's common stock.
Sun closed Monday at 59.375, down 5/16, while Ancor ended at $17.50, down 1/16,
on Nasdaq. |
