This Day On The Street
Continue to site
ADVERTISEMENT
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

Giga-tronics And Active Value Investors, LLC Close $500,000 Strategic Investment

SAN RAMON, Calif., Feb. 26, 2013 (GLOBE NEWSWIRE) -- Giga-tronics Incorporated (Nasdaq:GIGA), a leading provider of test and measurement equipment, today announced that on February 25 it completed the previously announced private placement of preferred stock to an affiliate of Active Value Investors, LLC for gross proceeds of $500,000.

The Company has issued 3,425.65 shares of a new series of convertible preferred stock at a price of $146.00 per share to Active Value Investors, LLC. The preferred shares are initially convertible into 342,465 shares or approximately 5.4% (after giving effect to the conversion) of the Company's common stock, or the equivalent of $1.46 per share of common stock. The convertible preferred stock are generally entitled to vote together with the common stock on matters submitted to the Company's shareholders on an as-converted basis. As part of the transaction, the parties also entered into an Investor Rights Agreement providing for resale registration rights with respect to certain shares of common stock issuable upon conversion of the preferred stock and an Amended and Restated Warrant reducing the number of shares issuable under a warrant held by the investor from 848,684 to 506,219.

The Company plans to use the investment proceeds primarily for research and development of new products in its instrument business.

The Company has previously filed the Securities Purchase Agreement and Certificate of Determination for the preferred stock on a Form 8-K and will file the Form of Stock Certificate, Amended Warrant and Investor Rights Agreement on a Current Report on Form 8-K to which investors should refer for additional detail on the terms of the preferred stock and the investment.

About Giga-tronics Incorporated

Giga-tronics designs, manufactures, and markets various test and measurement equipment used in the development, test, and maintenance of wireless communications products and systems, flight navigational equipment, electronic defense systems, and automatic testing systems worldwide. Its products are primarily used in the design, production, repair, and maintenance of commercial telecommunications, radar, and electronic warfare equipment. Additional information may be found at http://www.gigatronics.com

Giga-tronics is a publicly held company, traded on the NASDAQ Capital Market under the symbol "GIGA". Giga-tronics produces instruments, subsystems and sophisticated microwave components that have broad applications in defense electronics, aeronautics and wireless telecommunications.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs