Sequans Communications Announces $7 Million Debt Financing
April 28 2016 - 6:00AM
Business Wire
4G chipmaker Sequans Communications S.A. (NYSE:SQNS) today
announced that it has raised net proceeds of $7 million from the
sale of convertible notes to two institutional investors, including
a current shareholder that purchased the convertible note issued in
April 2015, in a private placement transaction. The company intends
to use the proceeds for general corporate purposes.
The convertible notes will mature in April 2019 and will bear
interest at a rate of 7% per year, paid in kind annually on the
anniversary of the issuance of the note. The notes are convertible,
at the holder’s option, into the Company’s ADSs at a conversion
price equal to 1.2 times the 10-trading day volume-weighted average
price of the ADSs on the New York Stock Exchange beginning on April
28, 2016; provided, however, in no event shall the conversion price
be below $2.00 or exceed $3.00.
B. Riley & Company acted as advisor for the transaction.
This press release includes a summary of the general terms of
the transaction. The complete terms of the financing are included
in a Form 20-F to be filed by Sequans with the Securities and
Exchange Commission on April 29, 2015.
The convertible note and underlying shares have not been
registered under the United States Securities Act of 1933 and may
not be offered or sold in the United States absent registration or
an applicable exemption from registration requirements. This press
release does not constitute an offer to sell or the solicitation of
an offer to buy any security and shall not constitute an offer,
solicitation or sale of any securities in any jurisdiction in which
such offering sold would be unlawful.
Forward-Looking Statements
This press release contains projections and other
forward-looking statements regarding future events or our future
financial performance. All statements other than present and
historical facts and conditions contained in this release,
including any statements regarding our future results of operations
and financial positions, business strategy, plans and our
objectives for future operations, are forward-looking statements
(within the meaning of the Private Securities Litigation Reform Act
of 1995, Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of
1934, as amended). These statements are only predictions and
reflect our current beliefs and expectations with respect to future
events and are based on assumptions and subject to risk and
uncertainties and subject to change at any time. We operate in a
very competitive and rapidly changing environment. New risks emerge
from time to time. Given these risks and uncertainties, you should
not place undue reliance on these forward-looking statements.
Actual events or results may differ materially from those contained
in the projections or forward-looking statements. Some of the
factors that could cause actual results to differ materially from
the forward-looking statements contained herein include, without
limitation: (i) the contraction or lack of growth of markets in
which we compete and in which our products are sold (ii) unexpected
increases in our expenses, including manufacturing expenses, (iii)
our inability to adjust spending quickly enough to offset any
unexpected revenue shortfall, (iv) delays or cancellations in
spending by our customers, (v) unexpected average selling price
reductions, (vi) the significant fluctuation to which our quarterly
revenue and operating results are subject due to cyclicality in the
wireless communications industry and transitions to new process
technologies, (vii) our inability to anticipate the future market
demands and future needs of our customers, (viii) our inability to
achieve new design wins or for design wins to result in shipments
of our products at levels and in the time frames we currently
expect, (ix) our inability to execute on strategic alliances, (x)
the impact of natural disasters on our sourcing operations and
supply chain, and (xi) other factors detailed in documents we file
from time to time with the Securities and Exchange Commission.
Forward-looking statements in this release are made pursuant to the
safe harbor provisions contained in the Private Securities
Litigation Reform Act of 1995.
About Sequans Communications
Sequans Communications S.A. (NYSE:SQNS) is a 4G chipmaker and
leading provider of single-mode LTE chipset solutions to wireless
device manufacturers worldwide. Founded in 2003, Sequans has
developed and delivered six generations of 4G technology and its
chips are certified and shipping in 4G networks, both LTE and
WiMAX, around the world. Today, Sequans offers two LTE product
lines: StreamrichLTE™, optimized for feature-rich mobile computing
and home/portable router devices, and StreamliteLTE™, optimized for
M2M devices and other connected devices for the Internet of Things.
Sequans is based in Paris, France, with additional offices in the
United States, United Kingdom, Israel, Hong Kong, Singapore,
Taiwan, South Korea, and China. Visit Sequans online
at www.sequans.com; www.facebook.com/sequans; www.twitter.com/sequans.
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version on businesswire.com: http://www.businesswire.com/news/home/20160428005676/en/
Sequans Communications S.A.Media Relations:Kimberly Tassin,
+1-425-736-0569Kimberly@sequans.comorInvestor Relations:Claudia
Gatlin, +1-212-830-9080Claudia@sequans.com
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