By Sheri Kasprzak
New York, July 24 - eMagin Corp. secured $5.97 million from a private placement of 6% convertible debentures.
A group of institutional and other investors agreed to buy the debentures, which mature Jan. 21, 2008. Half of the principal, if not converted, will be due July 21, 2007, and the remainder will be due at maturity.
The debentures are convertible into 22,192,301 common shares at $0.26 each.
The investors also will receive warrants for 1.92 million shares at $0.26 each through Dec. 14, 2006.
Connected to the deal, director Paul Cronson, chief financial officer John Atherly, chief executive officer Gary Jones, senior vice president of display manufacturing and development operations Olivier Prache and chief marketing and strategy officer Susan Jones agreed to defer 10% of their compensation until eMagin becomes EBITDA positive.
Also, employees and directors have agreed to forfeit 4.7 million shares of existing stock options in return for repricing 8.8 million options at $0.26.
Proceeds will be used for working capital.
eMagin, based in Bellevue, Wash., develops high-resolution microdisplays used in virtual imaging technologies.
| Issuer: | eMagin Corp.
|
| Issue: | Convertible debentures
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| Amount: | $5.97 million
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| Maturity: | Jan. 21, 2008
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion price: | $0.26
|
| Conversion ratio: | Into 22,192,301 common shares
|
| Warrants: | For 1.92 million shares
|
| Warrant expiration: | Dec. 14, 2006
|
| Warrant strike price: | $0.26
|
| Announcement date: | July 24
|
| Stock symbol: | Amex: EMA
|
| Stock price: | $0.26 at close July 21
|
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