DURHAM, N.C., May 2, 2008 (PRIME NEWSWIRE) -- GigaBeam Corporation (OTCBB:GGBME), announced today that it has closed on a new round of financing totaling 2.4 million dollars, subject to certain administrative closing conditions. The amount includes approximately 1.1 million dollars in funds previously advanced to the Company resulting in a net of approximately 1.28 million dollars in new funds. The Company issued convertible debentures in the amount of 3.02 million dollars and warrants to purchase 17.2 million shares of common stock. The warrants have an exercise price of $0.35, subject to adjustment. The Company intends to use the funds to promote the Company's efforts to build sales, accelerate production and for general operational matters as the Company works toward becoming cash flow positive.
The Company has reduced its operating cash requirements and has had strong sales year to date as reported in a recent letter to shareholders. The Company currently has over 6 million dollars in inventory, which the Company believes has a low conversion cost to salable goods. If sales performance continues, the Company believes it can obtain sustainable cash flow positive operations in the near future.
About GigaBeam Corporation:
GigaBeam is a provider of fixed wireless communication equipment. The Company is the leader in the upper millimeter wave communication bands from 71GHz to 86GHz and has offerings in other bands including 18GHz now and is preparing to launch 4.9GHz, 5.4/5.8GHz and is also evaluating other offerings. GigaBeam's core products in the 70/80GHz band are immune to interference or interception, can be very densely deployed, and have inexpensive licensing to offer users protection. GigaBeam's product portfolio currently has products from 10Mbps to 1,000Mbps (Gigabit Ethernet) and coming soon will be an expanded portfolio of products from 10Mbps to 10,000Mbps. These products are point-to-point, line-of-sight and soon non-line-of-sight. The combined offering can provide ultra broadband high-speeds for core network applications and lower speed and economical edge/access offerings. GigaBeam products have been deployed in over 20 countries worldwide. Current GigaBeam users include many enterprise customers and cities globally, universities, medical centers, banks, various departments/ministries of defense, and other government agencies globally. To learn more about GigaBeam's revolutionary wireless technology, please visit www.gigabeam.com.
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Safe Harbor Statement
This press release and letter attached contain forward-looking statements that involve risks and uncertainties. You should not place undue reliance on these forward-looking statements. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons, including the risks described in our annual report on Form 10-K and other reports we file with the Securities and Exchange Commission. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made. We do not intend to update any of the forward-looking statements after the date of this press release to conform these statements to actual results or to changes in our expectations, except as required by law.