EWING, N.J.--(BUSINESS WIRE)--Aug. 23, 2001--Universal Display Corporation (NASDAQ:PANL; PHLX:PNL), a leading developer of flat panel display technology, announced today that it has completed a $25 million private placement with institutional investors. The placement consists of $10 million in convertible preferred stock and $15 million in secured convertible debentures.
Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display Corporation, said, ``This financing is a major step in securing our long-term ability to fully realize the commercial opportunities for our proprietary OLED technology. We now have the financial strength to continue the cutting edge research and commercial development for which OLEDs hold such great promise for our company and its investors.''
The new preferred stock is convertible into shares of common stock at $12.70 per share, subject to certain adjustments. The secured convertible debentures are convertible into common stock at $13.97 per share. In addition, the convertible preferred stock and the convertible debentures carry with them 40% warrant coverage to purchase common stock at $15.24 per share, subject to anti-dilution adjustments. The Company expects to use the proceeds, as they become available, for working capital needs. The purchase of $5 million of the preferred stock was funded on August 22, 2001. The purchasers are, subject to certain conditions, obligated to fund the balance of the purchase price for the preferred stock following the effectiveness of a registration statement. The debentures are secured by a letters of credit in favor of the purchasers. The proceeds from the sale of the debentures will become available to the Company as the indebtedness of the debenture is reduced upon their conversion. The placement of the preferred stock and the debentures has not been registered under the Securities Act of 1933.
Gerard Klauer Mattison & Co., Inc. acted as financial advisor and exclusive agent to Universal Display Corporation in connection with the private placement... |
