This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Giga-tronics Announces $500,000 Strategic Investment Sponsored By Active Value Investors, LLC

Stocks in this article: GIGA

SAN RAMON, Calif., Feb. 20, 2013 (GLOBE NEWSWIRE) -- Giga-tronics Incorporated (Nasdaq:GIGA), a leading provider of test and measurement equipment, today announced the signing of a securities purchase agreement that will yield gross proceeds of $500,000 to the Company.

Under the terms of the agreement, Alara Capital AVI II, LLC ("AVI SPV"), an investment vehicle under Active Value Investors, LLC ("AVI"), will purchase approximately 3,425 shares of a new Class C convertible preferred stock at a price of $146.00 per share, subject to certain closing conditions that are expected to be satisfied within two weeks. The preferred shares will be initially convertible into 342,465 shares or 5.37% (after giving effect to the issuance) 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.  The parties have agreed that the number of shares purchasable upon exercise of the existing warrant held by AVI SPC will be reduced by 342,465 shares,which is equal to the number of shares that AVI SPV would receive upon full conversion of the new series of preferred stock, maintaining the number of shares of common stock beneficially owned by AVI SPV as originally approved by the Company's shareholders.

John Regazzi, Chief Executive Officer of Giga-tronics, said, "This second strategic investment by AVI helps support our new investment strategy without further shareholder dilution and demonstrates AVI's continued confidence in the Company's future."

"About two years ago, Giga-tronics embarked on a road to refocus on growth and profits," said Dr. Lutz Henckels, Director of the Company and an operating partner of AVI and managing member of AVI SPV. "To do so, the Company needed to double its R&D expenses to aggressively develop a new family of products and to reduce its expense structure by consolidating its Microsource division in Santa Rosa with its Instrument division in San Ramon. These efforts will start to pay off in the upcoming fiscal year and we are excited to have been a major contributor in reinvigorating Giga-tronics' business."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs