Karl, what's your take on this news?
delayed 20 mins - disclaimerMonday September 14, 9:10 am Eastern TimeCompany Press ReleaseAcrodyne Communications, Inc. Announces New Financing Arrangements Totaling $3 Million
BLUE BELL, Pa.--(BUSINESS WIRE)--Sept. 14, 1998--Acrodyne Communications, Inc. (NASDAQ:ACRO - news), announced today that Scorpion-Acrodyne Investors LLC and the Newlight Associates funds, has acquired in aggregate 326,530 shares of Acrodyne Communications, Inc. Series A 8% Redeemable Convertible Preferred Stock for $1,000,000.
The preferred is convertible, share for share, into Acrodyne's common stock at the option of the Investors. The Preferred can be redeemed by Acrodyne at any time. The Preferred Stock will carry an 8% dividend rate compounded and paid annually in either cash or additional Preferred Stock at the option of Acrodyne.
In connection with this investment, the Investors will receive 500,000 warrants of Acrodyne Common Stock with an exercise price of $3.00 per warrant. The warrants will have a 7-year life from time of issuance. In addition, S-A Partners will receive 25,000 warrants at an exercise price of $3.00 per warrant for arranging the equity financing.
Concurrently, Acrodyne has obtained a commitment letter for a $2,000,000 revolving line of credit with a local banking institution. This credit arrangement will be secured by company assets and will be available on a standard formula basis. The interest rate charged on borrowing against this credit line will be the bank's prime rate.
Proceeds from the Preferred Stock will be used to fund the Company's ongoing development projects and demonstration equipment related to the ACT(tm) technology and New Generation transmitters. Proceeds from the line of credit financing will be used to fund the working capital needs of the Company to support the rapid growth the Company has experienced since the beginning of the year. |
