OCCM news
SANTA BARBARA, Calif.--(BUSINESS WIRE)--March 28, 2005--
Occam Networks Inc. (OTCBB: OCCM), a supplier of
Ethernet- and IP-based loop carrier equipment to telecommunications
companies, announced today that it has completed the private placement
portion of its Series A-2 Preferred Stock Financing. On March 24,
2005, Occam issued 545,979 shares of Series A-2 Preferred Stock for
cash proceeds of $4.925 million, and conversion of outstanding
principal and interest under a promissory note totaling $534,790. The
shares sold at the final closing were sold to existing venture capital
investors and a new strategic investor.
The Series A-2 Preferred Stock was sold for $10 per Series A-2
share, equivalent to the pricing of prior issuances of Series A-2
Preferred Stock between November 2003 and January 2005. The Common
Stock equivalent price at which the shares were sold was $0.11 per
share. Approximately 90.9 shares of Common Stock are issuable on
conversion of each share of Series A-2 Preferred Stock. Since November
2003, Occam has sold approximately 3.3 million shares of Series A-2
Preferred Stock in private placement transactions, raising cash
proceeds of approximately $32.8 million.
The rights, privileges, and preferences of the Series A-2
Preferred Stock are described in Occam's filings with the Securities
and Exchange Commission.
The Series A-2 Preferred Stock sold in connection with this
financing, and the Common Stock issuable upon conversion thereof, have
not been registered under the Securities Act of 1933, as amended, or
any state securities laws and may not be offered or sold in the United
States absent registration or an applicable exemption from the
registration requirements of the Securities Act or applicable state
securities laws.
Occam has previously announced its intention to conduct a rights
offering whereby holders of Occam's Common Stock will have an
opportunity to purchase shares of Series A-2 Preferred Stock on terms
substantially similar to the terms under which shares have been sold
to existing investors. Applicable subscription ratios, record dates,
issuance dates and subscription periods have not yet been determined.
In the spring of 2005, the company intends to file a registration
statement with the Securities and Exchange Commission covering the
offer and sale of Series A-2 Preferred Stock to common stockholders in
the rights offering. No offers to sell or offers to purchase any
shares of Series A-2 Preferred Stock in connection with the rights
offering will be made or accepted unless and until the Securities and
Exchange Commission has declared the registration statement relating
to the rights offering to be effective.
This announcement is neither an offer to sell nor a solicitation
of an offer to buy any of the securities described herein.
About Occam Networks Inc.
Occam Networks Inc. develops and markets innovative broadband loop
carrier networking equipment that enables telephone companies to
deliver voice, data and video services. Based on Ethernet and Internet
Protocol (IP) technologies, Occam's equipment allows
telecommunications service providers to deliver traditional phone
services, as well as advanced Voice over IP, residential and business
broadband, and digital television services through a single,
all-packet access network. Occam is headquartered in Santa Barbara,
Calif.
KEYWORD: NORTH AMERICA CALIFORNIA UNITED STATES
INDUSTRY KEYWORD: TECHNOLOGY HARDWARE NETWORKS TELECOMMUNICATIONS FUNDING
SOURCE: Occam Networks Inc.
CONTACT INFORMATION:
Occam Networks Inc., Santa Barbara
Howard Bailey, 805-692-2908
hbailey@occamnetworks.com
or
Connect Public Relations
Spencer Parkinson, 801-373-7888
spencerp@connectpr.com
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