Oct 31, 2011

"Following" : "Follow"}} October 31, 2011 4:01pm   Comments Share: Giga-tronics Incorporated (Nasdaq: GIGA ) today announced the signing of a securities purchase agreement to receive a $2.2 million equity investment sponsored by Alara Capital Partners, LLC. Under the terms of the strategic investment, Alara Capital AVI II, LLC will purchase 9,997 shares of a new series of convertible preferred stock at a price of $220 per share, subject to certain conditions to closing. The parties anticipate the closing will occur within two weeks. The preferred shares will be initially convertible into 999,700 shares or approximately 16.6% (after giving effect to the conversion) 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. Upon closing, Alara will also receive warrants to purchase up to 848,684 additional shares of common stock in the future, subject to approval of the Giga-tronics shareholders. John Regazzi, Chief Executive Officer of Giga-tronics said, "We could not have found a better strategic investor than Alara Capital. They have a deep knowledge of our industry sector and their investment is a strong endorsement of our overall business. " © 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.