New fianancing
FREMONT, Calif.--(BUSINESS WIRE)--May 27, 1997--SyQuest Technology, Inc. (NASDAQ:SYQT) today announced it has concluded an $8.5 million round of financing, the final portion of a recent fund-raising effort that has brought in $33 million from current and new investors, including New Enterprise Associates. The round completes a year-long refinancing that has raised a total of $120 million of new equity for the company.
The terms of the incremental $8.5 million are identical to those associated with the now-completed $24.5 million in financing announced May 8, 1997. The investors have purchased shares of SyQuest's 5% Cumulative Convertible Preferred Stock, Series 4, at $100 per share. These are convertible into SyQuest common stock at a price equal to the five-day average of the NASDAQ closing price prior to conversion, subject to designated cap and floor prices. The company has also issued seven-year warrants to purchase 7.5 million shares of SyQuest common stock, exercisable at a price equal to 130% of the five-day average NASDAQ closing price prior to exercise, subject to designated cap and floor prices.
SyQuest also said that it has converted an additional $2.8 million of vendor indebtedness owed to two vendors into common stock at the NASDAQ closing price on the dates of the conversions. This raises the total of SyQuest's debt-to-equity conversions in the past year to $28.5 million. "We are highly gratified by the support of our investors and vendors," said Edward Marinaro, SyQuest chairman of the board. "We will now be turning our attention aggressively to the next phase of our turnaround program."
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