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Giga-tronics Incorporated
, a leading provider of test and measurement equipment, today
announced the signing of a securities purchase agreement that will yield gross
proceeds of $500,000 to the Company.
Under the terms of the agreement, Alara Capital AVI II, LLC ("AVI SPV"), an
investment vehicle under Active Value Investors, LLC ("AVI"), will purchase
approximately 3,425 shares of a new Class C convertible preferred stock at a
price of $146.00 per share, subject to certain closing conditions that are
expected to be satisfied within two weeks. The preferred shares will be
initially convertible into 342,465 shares or 5.37% (after giving effect to the
issuance) of the Company's common stock. The convertible preferred stock will
be entitled to vote together with the common stock on matters submitted to the
Company's shareholders on an as-converted basis. The parties have agreed that
the number of shares purchasable upon exercise of the existing warrant held by
AVI SPC will be reduced by 342,465 shares,which is equal to the number of
shares that AVI SPV would receive upon full conversion of the new series of
preferred stock, maintaining the number of shares of common stock beneficially
owned by AVI SPV as originally approved by the Company's shareholders.
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