Ambient Secures $8.0 Million in Permanent Funding

Ambient Secures $8.0 Million in Permanent Funding
Monday November 24, 8:30 am ET

BOSTON--(BUSINESS WIRE)--Ambient Corporation (OTCBB: ABTG - News) announced today that it has raised an additional $8.0 million from Vicis Capital Master Fund (Vicis). This injection of capital follows Ambient’s strongest quarterly results to date and enables Ambient to fund present initiatives and future growth. Vicis’ investment into Ambient now totals $23.5 million.

Vicis will also be exercising all of the warrants previously issued to it between July 31, 2007 and April 23, 2008 through a combination of “cashless exercises” as well as “for cash exercises.” This exercise is anticipated to net Ambient approximately $242,142, in addition to the $8.0 million investment, and will result in Vicis holding, immediately following such exercise, approximately 65% of Ambient’s outstanding shares of Common Stock.

Shad Stastney, a partner with Vicis Capital, LLC, the investment manager for Vicis Capital Master Fund, commented, “In completing this latest round of investment into Ambient and exercising our warrants, Vicis has taken a controlling ownership position in a company that has continuously met development goals and successfully positioned itself to capitalize on the progressive movements within the smart grid space. Our investments into Ambient reflect our belief and support of its initiatives focusing on wide-scale grid efficiency gains through the deployment of such advanced technologies.”

This cash infusion, combined with the revenue generated from the contract announced in April of this year, positions Ambient to expand its business plan for a growing market and affords it the necessary flexibility to increase product manufacturing for future deployments and opportunities. The present financing involves no increase of debt, allowing Ambient to use the investment to fund current and future business activities through 2009.

“We are at a defining moment, both as a company and as a nation,” stated John J. Joyce, President and CEO of Ambient. “The incoming administration in Washington has stated that the new clean energy economy is a top priority. Along with our partners and the continued support of Vicis, we are enabling energy efficiencies and technologies that will help the country drive towards energy independence by offering utilities communications solutions for the future by modernizing the distribution infrastructure. Ambient whole heartedly supports the emerging national awareness, as we believe the most effective energy solution available to combat future increase in energy demand is to more efficiently use the energy already generated.”

On November 14, 2008, Ambient reported for the nine-months ending September 30th, year-to-date revenues of $4,450,099, an increase of 44% for the corresponding period in 2007.

Additional information relating to the terms of the investment will be included in Ambient’s Current Report on Form 8-K, which Ambient will be filing with the Securities and Exchange Commission. Additional information on Ambient’s third quarter results can found in Ambient’s most recent 10-Q.