MOUNT PROSPECT, Ill.-Illinois Superconductor Corp. announced it has received $5 million in equity financing, consisting of $3.5 million from new investors, Elliott Associates L.P. and Westgate International L.P., and $1.5 million from existing investors, Southbrook International Investments Ltd. and Brown Simpson Asset Management L.L.C.
Illinois Superconductor said it will use the funds for working capital and general corporate purposes, primarily to support the continued commercialization of the company’s wireless filter products.
In June, Illinois Superconductor entered into a financing agreement with Southbrook whereby Illinois Superconductor may issue up to $15 million of convertible preferred stock in several separate tranches. This $1.5 million investment brings to $6 million the amount of stock issued to Southbrook and Brown Simpson.
The $3.5 million from Elliott Associates and Westgate International was financed under similar terms as the Southbrook investment. Illinois Superconductor also has issued Elliott and Westgate warrants to purchase a total of 34,782 shares of its common stock at a 25 percent premium to Illinois Superconductor’s recent closing prices. The warrants are exercisable over a four-year time period.
