Giga-tronics Reports $500K Strategic Investment Sponsored by Active Value Investors

Giga-tronics Incorporated(Nasdaq: GIGA), a leading provider of test and measurement equipment, todayannounced the signing of a securities purchase agreement that will yield grossproceeds of $500,000 to the Company.Under the terms of the agreement, Alara Capital AVI II, LLC ("AVI SPV"), aninvestment vehicle under Active Value Investors, LLC ("AVI"), will purchaseapproximately 3,425 shares of a new Class C convertible preferred stock at aprice of $146.00 per share, subject to certain closing conditions that areexpected to be satisfied within two weeks. The preferred shares will beinitially convertible into 342,465 shares or 5.37% (after giving effect to theissuance) of the Company's common stock. The convertible preferred stock willbe entitled to vote together with the common stock on matters submitted to theCompany's shareholders on an as-converted basis. The parties have agreed thatthe number of shares purchasable upon exercise of the existing warrant held byAVI SPC will be reduced by 342,465 shares,which is equal to the number ofshares that AVI SPV would receive upon full conversion of the new series ofpreferred stock, maintaining the number of shares of common stock beneficiallyowned by AVI SPV as originally approved by the Company's shareholders.