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Technology Stocks : Oclaro, Inc. (Avanex-Bookham) -- Ignore unavailable to you. Want to Upgrade?

To: FJB who wrote (2095)	3/7/2006 8:47:03 AM
From: Hawkmoon	Read Replies (2) \| Respond to of 2293

Well, AVNX sold a bundle of shares at $2/share, taking advantage of the run-up. And BOY 'O BOY!! Am I glad I sold at the close last night!!! This was a scary stock to chase, and I was just trying to day trade it. But on the other hand, it puts a floor in the stock at $2/share, so we shouldn't fall beneath that level. But it's likely to take the wind out the sails for a little while. But I think they'll be a lot of churn around $2.05 to 2.25 and a good trading opportunity over the rest of the week. Hawk biz.yahoo.com Avanex Announces $48 Million Common Stock Offering Tuesday March 7, 8:30 am ET FREMONT, Calif., March 7 /PRNewswire-FirstCall/ -- Avanex Corporation (Nasdaq: AVNX - News) announced today that it has agreed to sell publicly 24,075,000 shares of its common stock at $2.00 per share to certain investors, for aggregate proceeds of approximately $48.15 million, before placement agent fees and other offering expenses. The purchase price represents a 6.4% premium to the average closing price of the stock over the five trading days ended on March 6, 2006 of $1.88. The sale is expected to be completed on March 9, 2006 and is subject to customary closing conditions. The net proceeds of the financing will be used for general corporate purposes and working capital requirements. In connection with the issuance of the shares, the investors will be issued warrants which will be exercisable for 7,222,500 shares of the Company's common stock. The warrants expire four years from the initial closing and are exercisable at $2.73 per share. "The completion of this offering will significantly strengthen Avanex's balance sheet and enhance our flexibility to pursue our business plan and take advantage of future growth opportunities," said Jo Major, President and CEO. Banc of America Securities LLC acted as exclusive placement agent in connection with the offering. The shares in this offering are being issued under a shelf registration statement previously filed with the Securities and Exchange Commission and declared effective on July 28, 2004 relating to up to $100 million of the Company's securities. A prospectus supplement related to the public offering will be filed with the Securities and Exchange Commission. Copies of the prospectus supplement relating to the offering may be obtained from Avanex Corporation, 40919 Encyclopedia Circle, Fremont, CA 94538, Attention: Investor Relations.