Hybrid Networks Inc.2/25/2001 7:00 PM Eastern
SAN JOSE, CALIF. - Hybrid Networks Inc., a provider of high-capacity fixed broadband wireless Internet-access systems, has secured $15 million in equity financing from a venture capital group.
According to the agreement, Hybrid received an initial investment of $7.5 million from The Halifax Fund LP, a subsidiary of The Palladin Group LP, by selling an equal amount of convertible debentures convertible into Hybrid stock. The agreement also contains a five-year warrant for the purchase of 833,333 shares of Hybrid common stock at $9 per share.
After certain conditions are satisfied, Hybrid can compel the exercise of those warrants at a price equal to $9 per share or 94 percent of the then-current market price of its stock, whichever is lowest. That could mean another $7.5 million in equity financing later this year.
Hybrid said in a statement that it would use the proceeds to develop its products and expand its sales efforts into international markets.