MONTVALE, N.J.-Geotek Communications Inc. announced that investors affiliated with George Soros were scheduled to purchase about $21 million principal amount of units consisting of 15 percent senior secured discount notes due 2005 and 10-year warrants to purchase shares of common stock of the company at $9.90 a share. Net proceeds to the company are expected to be $10 million.
The purchase is in connection with Geotek’s private placement of $207 million principal amount of such units consummated in July. The Soros Group made previous purchases in 1993 and 1994.
Geotek is building a frequency-hopping specialized mobile radio network at 900 MHz in various cities throughout the northeastern United States.
