EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Page 1 of 2
COMPANY CONTACT:
Xxxxxxx Xxxxxx
Chief Financial Officer
(000) 000-0000
P-COM, INC. ENTERS INTO AN AGREEMENT FOR A $15 MILLION EQUITY INVESTMENT
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CAMPBELL, CA--December 22, 1998--P-Com, Inc. (NASDAQ National Market:
PCMS) announced today that it has entered into an agreement for a $15 million
convertible preferred stock private placement with three investors, Castle
Creek Partners, LLC, Xxxxxxxx Capital Management, and Heights Capital
Management. Each of the Investors specializes in equity investments in public
technology companies. Under the terms of the purchase agreement, P-Com will
sell 15,000 shares of newly designated Series B Convertible Preferred Stock
for an aggregate purchase price of $15 million. PaineWebber Incorporated
served as the Company's placement agent on this transaction.
The Series B Convertible Preferred Stock is convertible into shares of
Common Stock immediately upon issuance, at conversion rates that vary with
time and with the occurrence of certain events, and, subject to certain
exceptions, will automatically convert into Common Stock three years after the
date of its issuance by the Company. The Series B Convertible Preferred Stock
will accrue a 6% per year premium, payable in cash or Common Stock, and
carries 25% Common Stock purchase warrant coverage, which is exercisable at a
premium to the current stock price. The Series B Convertible Preferred Stock
is redeemable upon the occurrence of certain events.
"This financing will strengthen the cash position on our balance sheet,
positioning us to pursue P-Com's growth opportunities," said Xxxxxxx X.
Xxxxxx, Chief Financial Officer of the Company.
The securities to be issued in the private placement are not registered
under the Securities Act of 1933, as amended (the "Act"), and will be offered
and sold in the United States under the exemption from registration
requirements provided by Regulation D promulgated under the Act. The Company
will be filing a registration statement covering the resale of the Common
Stock underlying the Series B Convertible Preferred Stock and warrants.
P-Com, Inc. develops, manufactures and markets network access systems for
the worldwide wireless telecommunications market. The point-to-point, spread
spectrum, and point-to-multipoint radio links provided by P-Com are designed
to satisfy the network requirements of cellular and personal communications
services, corporate communications, public utilities and local governments. In
addition, P-Com provides comprehensive network services including system and
program planning and management, path design and installation. P-Com also
provides network performance monitoring devices.
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P-COM, INC. ENTERS INTO AN AGREEMENT FOR A $15 MILLION EQUITY INVESTMENT
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P-Com, Inc., with world headquarters in Campbell, California, USA and
offices in Florida, New Jersey, Virginia, the UK, Italy, France, Germany,
Poland, Mexico, and China, is an ISO 9001 certified company. For additional
information, contact P-Com at:
P-Com, Inc. * 0000 X. Xxxxxxxxxx Xxxxxxxxx * Xxxxxxxx, XX 00000 * XXX
TEL: (000) 000-0000 * FAX: (000) 000-0000
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