Boston, Mass., January 5, 2011 – Ambient Corporation (OTCBB: ABTG), a leader in smart grid communications infrastructure, today announced the conversion of the $5 million “Holdback Account,” previously established by its majority stockholder, to company securities. The deal provides Ambient with an immediate $5 million in funding, which the company will use to improve stockholder equity and strengthen its balance sheet in anticipation of new strategic and market opportunities in 2011.
The original Holdback Account was created in 2009 as a financial protection against the continued downturn of the economy. Despite challenging economic times, however, Ambient demonstrated an ability to continually grow a market leading position throughout 2010 and finished the year with a very strong backlog of orders for its smart grid communications technology.
“The immediate injection of funding will increase shareholder equity while strengthening Ambient’s financial profile for the next phase of the strategic initiatives we began in early 2010,” stated John J. Joyce, President and CEO of Ambient Corporation. “Over the past two years we have grown into a leadership position in the emerging smart grid infrastructure market, and as a leader, our balance sheet needs to reflect the stability and strength we have developed.”
Continued Joyce, “The investment will also allow us to continue to roll out new product lines, for which we have already received orders, and to maintain our strong position from a product perspective in the rapidly evolving smart grid market.”
A recognized innovator in the migration to “smart,” two-way communicating electric grids, Ambient designs and develops core infrastructure and network management platforms for forward-thinking utilities worldwide.
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