[February 21, 2017] |
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Resonant Announces $7.5 Million Private Placement by Longboard Capital Advisors
Resonant Inc. (NASDAQ: RESN), a designer of filters for radio frequency,
or RF, front-ends that specializes in delivering designs for difficult
bands and complex requirements, today announced it has entered into a
definitive agreement with an affiliate of Longboard Capital Advisors,
LLC, an existing stockholder of Resonant, to raise gross proceeds of
$7.5 million in a private placement of units at a per-unit price of
$4.61, which was the average closing price of Resonant's common stock
for the ten trading days ending February 16th (the Offering).
Longboard and its affiliates led Resonant's financing in September 2016.
They also provided early stage funding to Resonant and have been valued
long-term investors.
Each unit consists of one share of the Company's common stock, par value
$0.001 per share (Common Stock), and one warrant to purchase one share
of Common Stock at an exercise price of $8.25 per share. The warrant is
exercisable for a period commencing six months and ending 2.5 years from
the date of the closing of the Offering. Resonant anticipates using the
net proceeds from the fund raising to continue its product development
efforts and business development activities, and for general and
administrative purposes.
"Resonant continues to execute on an aggressive pace to deliver on the
power of its ISN platform and capitalize on the strength of its
intellectual property and team," said George B. Holmes, CEO of Resonant.
"It's through investor confidence from firms like Longboard that we have
been able to focus on customer acquisition, socket expansion and
delivering solutions with increasing complexity to our customers."
"This new investment from Longboard, together with the company's ongoing
efforts to commercialize its products and technology as shown by our
recently announced one million unit shipment milestone, positions
Resonant with a secure financial path as we execute towards generating
recurring royalty revenue," continued Holmes. "We believe we will be
able to capitalize on these opportunities to expand our company and
accelerate the pace of license conversion to royalty revenue."
The Offering is expected to close on or prior to February 22, 2017,
subject to satisfaction of customary closing conditions. The warrants
will not be separately listed for trading. Details of the Offering will
be included in a Current Report on Form 8-K filed shortly after closing.
Resonant will be required to file a resale registration statement with
the Securities and Exchange Commission no later than April 15, 2017 that
covers the resale by the purchaser of the shares of Common Stock, and
the shares of Common Stock undrlying the warrants, purchased in the
Offering.
The securities offered in the Offering have not been registered under
the Securities Act of 1933 or applicable securities laws of any state or
jurisdiction. Accordingly, the securities may not be offered or sold in
the United States except pursuant to an effective registration statement
or an applicable exemption from the registration requirements of the
Securities Act and such applicable securities laws of any state or
jurisdiction. This press release does not constitute an offer to sell or
the solicitation of an offer to buy the securities, nor shall there be
any sale of the securities in any state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to the registration
or qualification under the securities laws of such state or jurisdiction.
About Resonant Inc.
Resonant is creating software tools and IP & licensable blocks that
enable the development of innovative filter designs for the RF
front-end, or RFFE, for the mobile device industry. The RFFE is the
circuitry in a mobile device responsible for the radio frequency signal
processing and is located between the device's antenna and its digital
baseband. Filters are a critical component of the RFFE that selects the
desired radio frequency signals and rejects unwanted signals and noise.
For more information, please visit www.resonant.com.
About Resonant's ISN® Technology
Resonant can create designs for hard bands and complex requirements that
we believe have the potential to be manufactured for half the cost and
developed in half the time of traditional approaches. The Company's
large suite of proprietary mathematical methods, software design tools
and network synthesis techniques enable it to explore a much bigger set
of possible solutions and quickly derive the better ones. These improved
filters still use existing manufacturing methods (i.e. SAW) and can
perform as well as those using higher cost methods (i.e. BAW). While
most of the industry designs surface acoustic wave filters using a
coupling-of-modes model, Resonant uses circuit models and physical
models. Circuit models are computationally much faster, and physical
models are highly accurate models based entirely on fundamental material
properties and dimensions. Resonant's method delivers excellent
predictability, enabling achievement of the desired product performance
in roughly half as many turns through the fab. In addition, because
Resonant's models are fundamental, integration with its foundry and fab
customers is eased because its models speak the "fab language" of basic
material properties and dimensions.
Safe Harbor/ Forward-Looking Statements
This press release contains forward-looking statements, which include
the following subjects, among others: the expected closing of the
private placement and the intended use of proceeds from the offering, the
status of filter designs under development, the capabilities of our
filter designs, and, the timing and amount of future royalty streams.
Forward-looking statements are made as of the date of this document and
are inherently subject to risks and uncertainties which could cause
actual results to differ materially from those in the forward-looking
statements, including, without limitation, the following: the
satisfaction of the conditions to closing of the offering; risks
associated with the cash requirements of our business; our limited
operating history; our ability to complete designs that meet customer
specifications; the ability of our customers (or their manufacturers) to
fabricate our designs in commercial quantities; the ability of our
designs to significantly lower costs compared to other designs and
solutions; the risk that the intense competition and rapid technological
change in our industry renders our designs less useful or obsolete; our
ability to find, recruit and retain the highly skilled personnel
required for our design process in sufficient numbers to support our
growth; our ability to manage growth; and general market, economic and
business conditions. Additional factors that could cause actual results
to differ materially from those anticipated by our forward-looking
statements are under the captions "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in our most recent Annual Report (Form 10-K) or Quarterly
Report (Form 10-Q) filed with the Securities and Exchange Commission.
Forward-looking statements are made as of the date of this release, and
we expressly disclaim any obligation or undertaking to update
forward-looking statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170221005684/en/
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