Ambient Corporation, a development stage company and founding member of the Universal Powerline Association (UPA), is a pioneer in the Broadband over Power Lines (BPL) industry. Engaged in the design, development and marketing of patented BPL equipment and technologies, Ambient's proprietary technology and in-depth industry experience is designed to provide optimal solutions for the Utility and Multi-Dwelling Unit (MDU) markets. Headquartered in Newton, MA, Ambient is a publicly traded company (OTC BB: ABTG - News). Visit Ambient at www.ambientcorp.com.
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Tuesday May 30, 9:10 am ET
BOSTON--(BUSINESS WIRE)--May 30, 2006--Ambient Corporation (OTCBB: ABTG - News), a leader in Broadband over Power Lines (BPL) solutions, today announced that it has closed a private placement of $10 million in principal amount of its two year 8% Senior Secured Convertible Debentures to institutional and individual investors.
Ambient intends to use the net proceeds of the financing to fund further development of its next generation products, pursue strategic alliances with the utilities that have expressed interest in utilizing Ambient's BPL solutions, further expand its existing BPL deployments as Ambient moves to commercialization and for other working capital purposes. In addition, as part of this funding, the secured bridge loans made earlier this year have been extinguished.
Commenting on the raise, John J. Joyce, President and CEO of Ambient stated, "We are at a tipping point as an industry with many well-known utilities taking a "validate and endorse" approach to BPL. This funding will allow Ambient to continue the migration process to Ambient's proprietary Gen 2 equipment and launch our Network Management System (NMS) marketing strategy. It will also allow us to continue evaluating new opportunities while simultaneously moving ahead with our other deployments."
The 8% Senior Secured Convertible Debentures are secured by a lien on certain of Ambient's property. As part of this transaction, the investors also received Class A and B warrants to purchase shares of Ambient's common stock at $0.20 and $0.25, respectively. Additional information relating to the Senior Secured Convertible Debentures, the warrants and related matters will be included in Ambient's Current Report on Form 8-K that Ambient will file with the Securities and Exchange Commission.
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Ambient Corporation
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