New Issue: Emrise sells $18 million of stock in private placement

New York, Dec. 31 - Emrise Corp. said it sold $18 million of stock in a private placement to 17 investors.

The company issued 12,503,500 shares at a price of $1.44 per share, according to an 8-K filing with the Securities and Exchange Commission Thursday.

The investors also received five-year warrants for up to 3,125,875 shares at an exercise price of $1.73 per share.

The warrants are callable after one year if Emrise stock trades above $3.46 for 30 consecutive trading days.

Emrise is a Rancho Cucamonga, Calif., manufacturer of defense and aerospace electronic components and subsystems and communications equipment, will use $4 million of the proceeds to complete the financing of a planned acquisition in Europe. Other acquisitions are planned. Emrise also expects the private placement will help fund internal growth initiatives.

Issuer:	Emrise Corp.
Issue:	Stock
Amount:	$18 million
Shares:	12,503,500
Price:	$1.44
Warrants:	For 3,125,875 shares
Warrant term:	5 years
Warrant strike price:	$1.73
Pricing date:	Dec. 29
Settlement:	Jan. 15
Stock price:	$1.42 at close on Dec. 29
Investors:	Pinnacle Fund, LP, JLF Offshore Fund, Ltd., JLF Partners I, LP, JLF Partners II, LP, Bonanza Master Fund Ltd., Roaring Fork Capital SBIC, LP, others

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