Business
Proxim Wireless Provides Details about Recent Equity Transaction
Proxim Wireless Provides Details about Recent Equity Transaction.
About this update from Proxim Wireless Corporation
[{"type":"text","content":"For Further Information Contact:Proxim WirelessDavid RenauldVice President, Corporate Affairs(413) 584-1425 [email protected] Proxim Wireless Provides Details about Recent Equity Transaction Silicon Valley, August 18, 2009 – On August 13, 2009, Proxim Wireless Corporation (OTCQX: PRXM) completed an equity financing transaction. Proxim issued an initial press release on August 13, 2009 concerning this transaction. This current press release provides more details about that transaction. On August 13, 2009, Proxim entered into a Preferred Stock Purchase Agreement with SRA OSS, Inc. (a wholly owned subsidiary of SRA Holdings, Inc.), Lloyd I. Miller, III, and Milfam II L.P. The primary terms of that stock purchase agreement are summarized as follows: Proxim issued 2.5 million shares of its new Series A Convertible Preferred Stock and 1.25 million shares of its new Series B Non-Convertible Preferred Stock in a private placement all at $2.00 per share for total consideration of $7.5 millionSRA OSS purchased 1.25 million shares of the Series A stock and all 1.25 million shares of the Series B stock for total cash consideration of $5.0 million with the funds coming from its parent company SRA Holdings, Inc.Each of Mr. Miller and Milfam II purchased 625,000 shares of Series A stock for cash consideration of $625,000 and debt cancellation of $625,000 (as discussed in more detail below)The agreement contains va...