In a Wednesday announcement, American Access Technologies representatives said that the company has entered into signed agreements with investors to raise a total of $753,200, which will then be used to fund an expansion of the company?s manufacturing capabilities in 2005.
The company, which manufactures zone cabling and wireless enclosures that mount in ceilings, raised floors and custom furniture, for routing of telecommunications cabling, fiber optics and wireless solutions to the office desktop, said that it has agreed to sell 407,136 shares of common stock to the investors in a private placement transaction for gross proceeds of $753,200, at a price of $1.85 per share. The 407,136 shares were priced at 99 percent of the average closing price of the common stock over the 15-day period prior to the execution of the contract. Under the terms of the transaction, the investors will also be receiving warrants to purchase an 150,000 common shares that can be exercised at $2.30 per share over a period of five years. It is anticipated that the closing will be completed later this week. The company has agreed to file a registration statement with the Securities and Exchange Commission covering the resale of the shares by the investors.
Joe McGuire, CFO for American Access Technologies explained how the funds would be used in a company news release.
"The proceeds from this private placement will enable our company to undertake a further expansion of our manufacturing capabilities in 2005," said McGuire. "We have earmarked the proceeds of this funding to purchase laser cutting equipment that should enable us to increase our manufacturing efficiencies and bring in new business."