Thursday, April 24, 2008

Ambient raises $3M in stock sale to Vicis

Power-line communications company Ambient Corp. has raised $3 million through a private placement of stock with Vicis Capital Master Fund.

Ambient (OTC: ABTG) will use the funding, along with the revenue generated from an $11 million equipment contract announced earlier this month, to execute its business plan for the remainder of 2008, which includes the expansion of its broadband over power lines technology into smart grid applications for utilities, according to officials. The funding involves only warrants and no debt and the company will not incur principal or periodic payment obligations.

Vicis took on 135 million shares of common stock in the latest placement.

Vicis Capital, a hedge fund based in New York, originally advanced Ambient a $4 million bridge loan, announced last June. Vicis entered into a similar, $2.5 million private placement with Ambient in November, and a $2.3 million deal in January.

Ambient employs 34 workers. The company reported a 2007 net loss of $15.6 million on revenue of $2.3 million.