Amedia obtains $1.5M interim financing commitment
Amedia Networks, a provider of Ethernet broadband services for the "triple play" access market, has received an interim debt financing commitment of $1.5 million from an institutional investor. The bridge loan, which will accrue interest at the rate of 7% per year, will be secured and is expected to be replaced by long term financing. The company expects to close on the bridge loan this week, with proceeds being used for general corporate purposes.
"During the last few months, we've been evaluating our long-term financing options in an effort to obtain the most favorable funding of our business plan, and have narrowed the available options," remarks Frank Galuppo, Amedia's president and CEO. "This interim financing enables us to refine these proposals and implement a larger funding that meets our strategic growth goals."
At the closing of the interim financing, the company will issue to the lender its 7% convertible secured promissory note which will mature on the earlier of a subsequent long-term financing, or the first anniversary of issuance. Following the maturity date, the note may be converted by the lender at an initial per share conversion price of $1.25. The company will also issue to the lender five year warrants to purchase up to 150,000 shares of the company's Common Stock at an initial per share exercise price of $2.50.
"This is a vote of confidence by the investment community who recognize the prospects of our market as well as the value of our solution," concludes Galuppo.