Jul 20 2007
Advanced Photonix, Inc. has announced granted in October 2004 in connection with a private placement of its senior subordinated convertible notes.
Pursuant to the exercise of the AIRs, API has issued (i) an additional $4,000,000 aggregate principal amount of its senior subordinated convertible notes, convertible at the option of the holder under certain circumstances into shares of API's common stock at an initial conversion price of $2.1156 per share, subject to adjustment, and (ii) warrants to purchase an aggregate of 680,658 shares of API's common stock at an exercise price of $1.78 per share expiring September 20, 2011. API received gross proceeds of $4,000,000 from this exercise.
The securities have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. However, as part of the private placement transaction, API has agreed to file a registration statement on Form S-3 with the Securities and Exchange Commission covering the Class A Common stock to be issued upon conversion of the notes and exercise of the warrants.
In commenting on the transaction, Richard (Rick) Kurtz CEO and Chairman of the Board stated, "We are very pleased that the holders of the AIRs have chosen to make this additional investment in the Company. We have a number of opportunities in all three of our product platform groups and we plan to make investments in engineering, sales and business development that will help capitalize on our internal growth strategies. Our financial partners have the experience and long term time horizon consistent with our growth plans."