Are you loading up on JMAR now that they have financing?? lol Although they seem to be your favorite stock it is a wonder why Laurus would do another 7.5 million.
JMAR Technologies Receives $7.5 Million in New Financing from Laurus Master Fund, Ltd.
Sep 17, 2007 08:30:02 (ET)
SAN DIEGO, Sep 17, 2007 (BUSINESS WIRE) -- JMAR Technologies, Inc. (JMAR, Trade ), a leading developer of advanced laser, high-resolution imaging and photonics technologies, entered into an agreement on September 12, 2007 for up to $7.5 million of new secured debt financing with Laurus Master Fund, Ltd., a New York-based institutional fund that specializes in providing growth funding support to small and micro-cap companies. Proceeds from the financing will be placed in a restricted cash account in JMAR's name and released according to an operating budget, with a reserve for prepayment of the first year's interest. The loan has a maturity date of two years.
"We are very pleased with this latest round of financing, with the speed in execution and, more important, with the continued support and confidence expressed by Laurus," stated Dr. Neil Beer, president and CEO of JMAR. "This level of financing will permit our full concentration on proprietary products related to homeland security and military applications."
Laurus was also issued warrants to purchase 119 million shares of common stock of the Company. The warrants have a term of ten years and an exercise price equal to the par value of the Company's common stock ($0.01 per share). The warrants may not be exercised to the extent that the number of outstanding shares plus shares reserved for issuance exceeds the Company's current authorized shares of common stock, unless and until the Company obtains shareholder approval for an increase in the authorized shares to accommodate such an exercise.
Additionally, JMAR will pay Laurus royalties on the sale of JMAR's products, with the payments commencing 180 days after the closing. JMAR also agreed to cease or sell the majority of its Vermont business and transition the balance of the operations to San Diego, and to supplement its executive capabilities in the areas of financial management and product commercialization. |
