BOTHELL, Wash., Feb. 25, 2008 -- Electro-optic components designer Lumera Corp. announced that it could receive $25 million in capital over the next three years through a deal with private investment group Kingsbridge Capital Ltd.
Lumera and Kingsbridge entered into a committed equity financing facility (CEFF), under which Lumera can periodically receive portions of the money in exchange for newly issued shares of its stock. Lumera said the funds will support its corporate and research and development activities.
"This new facility, which adds a strategic financing dimension for Lumera, gives us the potential to access up to $25 million in capital over the next three years," said Peter Biere, Lumera's senior vice president and chief financial officer. "The new CEFF will be a less expensive, and therefore less dilutive, source of capital than that of more traditional capital market financings. Lumera currently has enough cash to cover our needs at least into the second quarter of 2009. We will continue to evaluate our capital needs as each of our businesses develops."
Lumera said it can use as much or as little of the $25 million as it chooses, with no commitments or use penalties. The CEFF doesn't contain any restrictions of the company's operating activities and doesn't prohibit it from seeking additional debt or equity financing.
Lumera uses proprietary polymer compounds to design its photonic communications devices for telecommunications and computing. Its subsidiary, Plexera Bioscience LLC, provides products to the life sciences industry and is also based in Bothell.
Last week Lumera announced it is partnering with Asyrmatos Inc. of Boston to develop telecommunications products. In exchange for the intellectual property associated with its millimeter wave communication technology, Lumera will receive a 25 percent ownership stake in the privately held Asyrmatos and a seat on its board. Lumera can also acquire the rest of the company in 2012 under the deal.
For more information, visit: www.lumera.com