SANTA BARBARA, Calif.-Superconductor Technologies Inc. and United States Cellular Corp. signed a five-year agreement under which U.S. Cellular will purchase a minimum of 100 SuperFilter systems during the next year, and possibly a minimum of an additional 400 SuperFilter systems during the following four years, said STI.
As part of the agreement, STI said it will issue U.S. Cellular a warrant, subject to vesting provisions, providing for the purchase of up to 1 million shares of STI common stock at a price of $4 per share. Under terms of the warrant, U.S. Cellular will be entitled to purchase one share of STI common stock for every $25 of SuperFilter system purchases made.
“The purchase agreement is the next step in allowing both companies to better forecast and plan the continuation of U.S. Cellular’s deployment of STI’s SuperFilters, and accelerates the testing of additional STI products in U.S. Cellular’s Code Division Multiple Access network,” said Richard W. Goehring, U.S. Cellular’s executive vice president, Engineering and Network Operations.
The SuperFilter system uses high-temperature superconducting technology and cryogenic cooling to create a filter and amplifier system in wireless base stations to enhance their performance, said STI.
