EMCORE Corporation Announces Increase in Private Placement
Friday February 15, 3:30 pm ET
ALBUQUERQUE, N.M., Feb. 15 /PRNewswire-FirstCall/ -- EMCORE Corporation (Nasdaq: EMKR - News) announced today that due to increased demand, it had agreed to issue an additional $6 million in the private placement which increased the total amount of the capital raised to $100 million. The increase of $6 million was agreed to on identical terms of the previously announced private placement.
In total, the Company has agreed to issue and sell, in a private placement $100 million of securities consisting, in the aggregate, of approximately 8 million shares of its common stock and warrants to purchase up to approximately 1.4 million additional shares. The purchase price was $12.50 per share, priced at the 20 day volume-weighted average price. The warrants have a five-year term and an exercise price of $15.06 per share. Jefferies & Company, Inc. acted as the Lead Placement Agent and Canaccord Adams Inc., Lazard Freres & Co. LLC and Merriman Curhan & Ford Co. acted as co-placement agents for the private placement. The private placement is expected to close on or before Wednesday, February 20, 2008.
EMCORE issued and sold the securities to selected institutional investors. EMCORE intends to use the net proceeds to acquire the telecom assets of Intel's Optical Platform Division and for working capital requirements.
The securities sold in this private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the absence of an effective registration statement under the Securities Act and applicable state securities laws or exemption from these registration requirements. EMCORE has agreed to file a registration statement covering the resale of the shares of common stock acquired by investors and the resale of shares of common stock issuable upon exercise of the warrants.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful. |
