SUNNYVALE, Calif.—Conductus Inc. announced it completed a $7.3 million private placement of equity to support the commercialization of its ClearSite products for the wireless market.
Under the terms of the financing, investors (led by Special Situation Fund and including Palo Alto Investors) purchased 3.7 million shares of common stock at $2 per share and received warrants to purchase an additional 1.8 million shares at $2.75 per share. Conductus said net proceeds should total $6.9 million.
“The proceeds from this financing will be used to accelerate our sales program aimed at winning additional deployment orders from the top 10 U.S. carriers, continue our field trial program and support the development of new wireless systems with even higher technical performance and economic benefits such as our new ClearSite 2300 Metro products,” said Charles Shalvoy, president and chief executive officer of Conductus. “In addition, we will expand our sales organization in the U.S. and overseas, and continue the expansion of our manufacturing organization and facilities.”
