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Ambient amends its agreement with Vicis Capital and raises $5 million
Following this, the investor will hold about 84.2% of company's shares
By Devika Patel
Knoxville, Tenn., Jan. 5 - Ambient Corp. amended a securities purchase agreement Vicis Capital Master Fund on Dec. 30, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
Under the original Nov. 16, 2009, agreement, if the company's cash resources fell below $1.5 million, the company was permitted to make drawdowns of $500,000 from the holdback account in exchange for 5 million common shares and series G warrants for a corresponding number of shares.
Under the agreement's new terms, Vicis has agreed to make the investment even though the cash balance condition precedent has not been met.
In consideration for the investment, the company has agreed to issue to Vicis 50 million common shares and two-year warrants for an additional 50 million shares. The warrants will each be exercisable at $0.20, a premium to the Dec. 29 closing share price.
Proceeds from the $5 million investment will augment the company's stockholders equity.
Vicis is the company's majority shareholder. Following the investment, Vicis will hold 1,388,208,414 company shares, or about 84.2% of the company's outstanding stock.
Located in Newton, Mass, Ambient develops broadband-over-power-lines technologies and services.
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