SpatiaLight Gets $15.4 Million in Financing

By Calvin Azuri

TMCnet Contributing Editor

 

SpatiaLight Inc., a leading developer and manufacturer of ultra high-resolution Liquid Crystal on Silicon (LCoS) microdisplays has reportedly received $15.4 million in venture capital. With this extra capital, SpatiaLight can look at embracing new opportunities in expanding its LCoS for its high definition television, head mounted display, near-to-eye and micro-projector markets.

SpatiaLight’s CTO, Michael Jin, said in a press release that the funding “will ensure our ability to successfully complete the developments of key projects with respect to our exciting new micro-projector and near-to-eye (NTE) head mounted display (HMD) product lines, as well as provide for the technical sales support for our existing T-3 microdisplay rear projection TV product line as we expand our customer base in this segment.”

The company had entered into an Equity Credit Agreement on April 26, 2004, along with six institutional investors. These investors were LP, Southshore Capital Fund Ltd., Southridge Partners, Pierce Diversified Strategy Master Fund, ENA, Enable Opportunity Partners LP, LLC, Enable Growth Partners LP, and Iroquois Master Fund Ltd.



David Hakala, SpatiaLight’s chairman and CEO, said “We are pleased to have this funding in place. Our objectives are to grow the company both from a revenue perspective as we bring on new customers and from a product category perspective with our new product developments and introductions. The funding provided by this agreement will assure the execution of these programs in achieving our business goals. This agreement allows us to focus on the tasks required for success rather than constantly working on financing.”

SpatiaLight entered into a Waiver, Rescission and Settlement Agreement in consideration for this financing on April 24. The agreement took place with six institutional investors that were parties to the Securities Purchase Agreement and Waiver Agreement dated February 23, 2007 and Securities Purchase Agreement and Registration Rights Agreement dated November 28, 2006.

Dr. Hakala went on to say: “This restructuring of our prior two financings eliminates our registration and liquidated damage obligations and eliminates all restrictions on future financings from these prior agreements, as well as returns 4.8 million warrants to the Company and delivers 4 million shares of the company’s Common Stock into escrow. It will be at the company’s option as to whether to use the equity line provided under this agreement or to find other financing sources if they are deemed to be more desirable to the company.”

On February 14, 2007 the U.S. Securities and Exchange Commission declared effective that all the new shares of Common Stock to be sold pursuant to the Equity Agreement or issued pursuant to the Waiver, Rescission, and Settlement Agreement must be registered pursuant to the Company's Registration Statement on Form S-3 (File No. 333-137100).

---------

Calvin Azuri is a contributing editor for TMCnet.

Don't forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users.

Also be sure to attend TMC’s (News - Alert) Communications Developer Conference to be held May 14-17, 2007 at the Hyatt Regency Santa Clara, Calif. Come learn how to build the next generation of IP-based communications products and services!