FiberCore Replaces $19 Million Equity Line, Draws Down $3 Million
CHARLTON, Mass., Aug. 23 -- FiberCore Inc. has replaced an existing $19 million equity line of credit and received proceeds of $3 million upon the private placement of common stock to Crescent International Ltd.
The purchase price was at a premium over the closing price of FiberCore's common stock on August 20, when FiberCore and Crescent entered into a new stock purchase agreement.
The new agreement replaces FiberCore's existing agreement with Crescent, which was a $30 million equity line. $11 million of the line was drawn in 2000 for the purchase of Xtal FiberCore Brasil, S.A. With the recent $3 million draw down, the equity line has now been reduced to $16 million.
The new agreement contains several positive features, including a pricing mechanism more advantageous to FiberCore. The proceeds from the current sale and future sales to Crescent will be used to fund capacity expansion and for other corporate purposes.
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