Resonant Announces $7.5 Million Private Placement by Longboard Capital Advisors
February 21 2017 - 8:30AM
Business Wire
Continued Execution and Retirement of Risk
Boosts Confidence of Existing Investor
Resonant Inc. (NASDAQ: RESN), a designer of filters for radio
frequency, or RF, front-ends that specializes in delivering designs
for difficult bands and complex requirements, today announced it
has entered into a definitive agreement with an affiliate of
Longboard Capital Advisors, LLC, an existing stockholder of
Resonant, to raise gross proceeds of $7.5 million in a private
placement of units at a per-unit price of $4.61, which was the
average closing price of Resonant’s common stock for the ten
trading days ending February 16th (the Offering). Longboard and its
affiliates led Resonant’s financing in September 2016. They also
provided early stage funding to Resonant and have been valued
long-term investors.
Each unit consists of one share of the Company’s common stock,
par value $0.001 per share (Common Stock), and one warrant to
purchase one share of Common Stock at an exercise price of $8.25
per share. The warrant is exercisable for a period commencing six
months and ending 2.5 years from the date of the closing of the
Offering. Resonant anticipates using the net proceeds from the fund
raising to continue its product development efforts and business
development activities, and for general and administrative
purposes.
“Resonant continues to execute on an aggressive pace to deliver
on the power of its ISN platform and capitalize on the strength of
its intellectual property and team,” said George B. Holmes, CEO of
Resonant. “It’s through investor confidence from firms like
Longboard that we have been able to focus on customer acquisition,
socket expansion and delivering solutions with increasing
complexity to our customers.”
“This new investment from Longboard, together with the company’s
ongoing efforts to commercialize its products and technology as
shown by our recently announced one million unit shipment
milestone, positions Resonant with a secure financial path as we
execute towards generating recurring royalty revenue,” continued
Holmes. “We believe we will be able to capitalize on these
opportunities to expand our company and accelerate the pace of
license conversion to royalty revenue.”
The Offering is expected to close on or prior to February 22,
2017, subject to satisfaction of customary closing conditions. The
warrants will not be separately listed for trading. Details of the
Offering will be included in a Current Report on Form 8-K filed
shortly after closing.
Resonant will be required to file a resale registration
statement with the Securities and Exchange Commission no later than
April 15, 2017 that covers the resale by the purchaser of the
shares of Common Stock, and the shares of Common Stock underlying
the warrants, purchased in the Offering.
The securities offered in the Offering have not been registered
under the Securities Act of 1933 or applicable securities laws of
any state or jurisdiction. Accordingly, the securities may not be
offered or sold in the United States except pursuant to an
effective registration statement or an applicable exemption from
the registration requirements of the Securities Act and such
applicable securities laws of any state or jurisdiction. This press
release does not constitute an offer to sell or the solicitation of
an offer to buy the securities, nor shall there be any sale of the
securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of such state or
jurisdiction.
About Resonant Inc.
Resonant is creating software tools and IP & licensable
blocks that enable the development of innovative filter designs for
the RF front-end, or RFFE, for the mobile device industry. The RFFE
is the circuitry in a mobile device responsible for the radio
frequency signal processing and is located between the device’s
antenna and its digital baseband. Filters are a critical component
of the RFFE that selects the desired radio frequency signals and
rejects unwanted signals and noise. For more information, please
visit www.resonant.com.
About Resonant’s ISN® Technology
Resonant can create designs for hard bands and complex
requirements that we believe have the potential to be manufactured
for half the cost and developed in half the time of traditional
approaches. The Company’s large suite of proprietary mathematical
methods, software design tools and network synthesis techniques
enable it to explore a much bigger set of possible solutions and
quickly derive the better ones. These improved filters still use
existing manufacturing methods (i.e. SAW) and can perform as well
as those using higher cost methods (i.e. BAW). While most of the
industry designs surface acoustic wave filters using a
coupling-of-modes model, Resonant uses circuit models and physical
models. Circuit models are computationally much faster, and
physical models are highly accurate models based entirely on
fundamental material properties and dimensions. Resonant’s method
delivers excellent predictability, enabling achievement of the
desired product performance in roughly half as many turns through
the fab. In addition, because Resonant’s models are fundamental,
integration with its foundry and fab customers is eased because its
models speak the “fab language” of basic material properties and
dimensions.
Safe Harbor/ Forward-Looking Statements
This press release contains forward-looking statements, which
include the following subjects, among others: the expected closing
of the private placement and the intended use of proceeds from the
offering, the status of filter designs under development, the
capabilities of our filter designs, and, the timing and amount of
future royalty streams. Forward-looking statements are made as of
the date of this document and are inherently subject to risks and
uncertainties which could cause actual results to differ materially
from those in the forward-looking statements, including, without
limitation, the following: the satisfaction of the conditions to
closing of the offering; risks associated with the cash
requirements of our business; our limited operating history; our
ability to complete designs that meet customer specifications; the
ability of our customers (or their manufacturers) to fabricate our
designs in commercial quantities; the ability of our designs to
significantly lower costs compared to other designs and solutions;
the risk that the intense competition and rapid technological
change in our industry renders our designs less useful or obsolete;
our ability to find, recruit and retain the highly skilled
personnel required for our design process in sufficient numbers to
support our growth; our ability to manage growth; and general
market, economic and business conditions. Additional factors that
could cause actual results to differ materially from those
anticipated by our forward-looking statements are under the
captions “Risk Factors” and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” in our most
recent Annual Report (Form 10-K) or Quarterly Report (Form 10-Q)
filed with the Securities and Exchange Commission. Forward-looking
statements are made as of the date of this release, and we
expressly disclaim any obligation or undertaking to update
forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20170221005684/en/
MZ North AmericaGreg
Falesnik1-949-385-6449Greg.Falesnik@mzgroup.us
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