SAN JOSE, Calif.-Hybrid Networks Inc., a leader in design, development, manufacturing and marketing of fixed broadband wireless systems has entered into an agreement with a fund of The Palladin Group L.P. that will provide the company with up to $15 million in cash to fund future operations.
Hybrid Networks has received an initial investment of $7.5 million and the agreement also includes a five-year warrant for the purchase of 833,333 shares of Hybrid common stock at $9 per share. Hybrid stands to receive up to an additional $7.5 million of equity financing later this year, if it compels the exercise of this warrant at an exercise price equal to the lower of $9 or 94 percent of the then current market price.
“The financing agreement enables us to continue to develop our products and aggressively expand our sales efforts into the rapidly growing international markets,” said Michael D. Greenbaum, president and CEO of Hybrid Networks. “In 2001, our fixed broadband wireless system will continue to evolve, and we will take advantage of the best technology components as they become available.”
