Superconductor Technologies Inc. Completes $1.5 Million Private Equity Financing
Increases Total Value of Equity Financing Package to $5.3 Million
SANTA BARBARA, Cali.--(BUSINESS WIRE)--Sept. 1, 1999-- Superconductor Technologies Inc. (NASDAQ: SCON) ("STI"), a leader in the development of wireless communications filter products utilizing superconducting materials and cryogenic technologies, today announced that it has completed the second tranche of a previously announced private equity financing for gross proceeds of $1.5 million with Tredegar Investments, Inc., Wilmington Securities Inc., a subsidiary of The Hillman Company, and Madrona Investment Group LLC.
This second tranche increases the total private equity financing package to $5.3 million from the anticipated $5.0 million.
The Company raised $1.2 million, under the terms of the previously announced private equity financing agreement, and an additional $300,000 from Madrona Investment Group LLC in the form of convertible preferred stock. Under the preferred stock agreement the Company sold 28,704 shares of Convertible Preferred Stock. The convertible preferred shares have a cumulative dividend of 6%, are convertible into 574,080 shares of STI common stock, and have certain voting rights, liquidation preferences, and registration rights. In connection with this financing, the Company also issued warrants to purchase up to 57,408 shares of common stock at $3.00 per share.
Superconductor Technologies Inc. is a leader in the development of wireless communications filter products utilizing superconducting materials and cryogenic technologies. The Company has additional applications in government communications and cryogenic markets. With headquarters in Santa Barbara, California, Superconductor Technologies Inc. ("STI") designs and manufactures systems for high-performance wireless applications.
Additional information on STI may be obtained by visiting the Company's web site at suptech.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including without limitation, statements regarding the Company's expectations, beliefs, estimates, intentions and strategies about the future. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates", variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict; therefore, actual results may differ materially from those expressed or forecasted in any such forward-looking statements as a result of certain factors including, but not limited to, product demand and market acceptance risks, general economic conditions, the impact of competitive products, technologies and pricing, equipment capacity constraints or difficulties, and other risks described in the Company's Securities and Exchange Commission filings.
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Contact:
Superconductor Technologies Inc.
Lisa Schatz, 805/683-7646
www.suptech.com
or
Kehoe, White, Van Negris & Company, Inc.
Van Negris/Philip J. Denning
212/396-0606 |
