Monday, November 24, 2008

Ambient adds $8M from equities sale to Vicis

By Mass High Tech Staff

New York-based hedge fund Vicis Capital Master Fund has added a new round of funding to its investment in Newton-based broadband over powerlines technology developer Ambient Corp., as well as exercised a number of previous warrants in the company, giving Vicis 65 percent of Ambient’s total outstanding shares.

The new $8 million in funding, brings Vicis’ total investment in Ambient (OTCBB: ABTG) to $23.5 million. The warrant transactions will add $242,142 to the company’s coffers, as well.

The new funding will be used to expand the company’s business plan for a growing market and “will provide the necessary flexibility to increase product manufacturing for future deployments and opportunities,” according to company officials.

Ambient’s “smart grid” technology allows utility operators to use their networks as a communications platform, for both grid-related applications, such as remote meter reading, as well as the possibility of offering broadband services to customers through the existing power infrastructure.

Earlier this month, Ambient, which trades on the over-the-counter bulletin board, reported year-to-date revenue of $4.5 million, an increase of 44 percent for the corresponding period in 2007. However, the company continues to post a loss, reporting a loss of $7 million over the course of the first nine months of 2008.