I don't know how material it is (I'll check after this post), but the PR I posted in message #2314 was withdrawn and replaced by this:
Company Press Release
SOURCE: Microvision, Inc.
Microvision Completes $6 Million Equity Financing
SEATTLE, April 5 /PRNewswire/ -- Microvision, Inc., (Nasdaq: MVIS; MVISW), developer of Virtual Retinal Display(TM) (VRD)(TM) technology, today announced that it has raised $6 million of new equity in a private placement of common stock. The investor is a fund managed by Heights Capital Management, a private equity investor in emerging growth companies. Josephthal & Co. of New York acted as investment banker to Microvision.
The company sold 440,893 shares of common stock at $13.61 per share, which represented a five percent discount from the average closing bid price for the 10 trading days ending March 30, 1999, of $14.33. In addition, the investor acquired two warrants to purchase additional common stock at higher prices, one with a 5-year term and the other with a 1-year term. Under the terms of the agreement, the company will register the shares issued in the initial sale and underlying the two warrants. Terms of the transaction include a provision that could result in a one-time issuance of a limited number of additional shares if the market price of the company's common stock is less than $14.33 on the date of effectiveness of the registration statement. The company intends to promptly file a registration statement covering the shares of common stock.
''This financing places Microvision on very solid ground,'' said Rick Rutkowski, Microvision president and CEO. ''The company's strong balance sheet reinforces our ability to continue to execute on an aggressive growth strategy. We believe that this additional financial strength makes the company even more attractive to both existing and prospective investors, and we are pleased to welcome Heights to a growing group of institutional investors in Microvision.''
Richard Raisig, Microvision CFO, stated, ''We are very pleased with the terms of the transaction. Once again we have been able to raise funds on favorable terms. In addition, we have created an investment banking relationship with Josephthal, which we believe can continue to serve the interests of the company and its shareholders.''
About Josephthal
Josephthal is a full-service investment banking and brokerage firm headquartered in New York. The firm traces its roots to 1910 when it began as a brokerage firm to high net worth clients. Today, with 28 offices and over 1,700 employees including account executives, worldwide, Josephthal ranks as the 15th largest securities firm in the U.S. Josephthal provides a wide range of financial services to its domestic and international clients including investment banking, research, sales and trading and asset management. The firm offers public and private equity placements, mergers and acquisitions, financial advisory and other corporate finance services.
About Microvision
Headquartered in Seattle, Microvision, Inc. is the developer of the patented Virtual Retinal Display(TM) (VRD(TM)) technology that uses a rapidly scanned beam of light to project images on the eye's retina, allowing the viewer to see large, full-motion images without the need for a conventional display screen. Microvision's objective is to be a leading provider of personal display products and imaging technology in a broad range of military, medical, industrial, professional and consumer applications. The company was founded in 1993. Additional information can be found at the company's website at mvis.com.
Forward-Looking Statement
The information set forth in this release includes ''forward-looking statements'' within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbor created by those sections. Certain factors that realistically could cause results to differ materially from those projected in the company's forward-looking statements are set forth in the company's Annual Report on Form 10-KSB and Quarterly Reports on Form 10-QSB, as filed with the Securities and Exchange Commission.
For more information on Microvision via fax, at no cost, dial 800-PRO-INFO, ticker symbol MVIS.
SOURCE: Microvision, Inc.
BTW, SI's news link still has the original PR - tsk tsk.
OK - here are the differences. First, the reset share price was raised in the second release from $13.61 to $14.33. That gives us a lower margin of safety against further dilution. Second, we must now assume that the number of warrants may also be increased if the share price falls below $14.33 (not $13.61 anymore). That also increases the chance of further dilution. I don't see any of this as a huge threat, and am hoping that the effective date of the registration can, under the rules, be earlier than the approval date. Can anyone answer that Q?
All in all, a fairly amateurish performance by MVIS, IMHO. |
