Giga-tronics (GIGA) Enters $2.2M SPA with Alara Capital
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Giga-tronics Inc. (Nasdaq: GIGA), has signed a securities purchase agreement (SPA) to receive a $2.2 million equity investment sponsored by Alara Capital Partners, LLC.
Under the terms of the strategic investment, Alara Capital AVI II, LLC will purchase 9,997 shares of a new series of convertible preferred stock at a price of $220 per share, subject to certain conditions to closing. The parties anticipate the closing will occur within two weeks. The preferred shares will be initially convertible into 999,700 shares or approximately 16.6% (after giving effect to the conversion) of the Company's common stock. The convertible preferred stock will be entitled to vote together with the common stock on matters submitted to the Company's shareholders on an as-converted basis. Upon closing, Alara will also receive warrants to purchase up to 848,684 additional shares of common stock in the future, subject to approval of the Giga-tronics shareholders.
As part of the investment, Giga-tronics has agreed to expand its board to seven members. Dr. Joseph Thompson and Dr. Lutz Henckels will join the Company's board of directors following the closing of the investment.
Under the terms of the strategic investment, Alara Capital AVI II, LLC will purchase 9,997 shares of a new series of convertible preferred stock at a price of $220 per share, subject to certain conditions to closing. The parties anticipate the closing will occur within two weeks. The preferred shares will be initially convertible into 999,700 shares or approximately 16.6% (after giving effect to the conversion) of the Company's common stock. The convertible preferred stock will be entitled to vote together with the common stock on matters submitted to the Company's shareholders on an as-converted basis. Upon closing, Alara will also receive warrants to purchase up to 848,684 additional shares of common stock in the future, subject to approval of the Giga-tronics shareholders.
As part of the investment, Giga-tronics has agreed to expand its board to seven members. Dr. Joseph Thompson and Dr. Lutz Henckels will join the Company's board of directors following the closing of the investment.
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