Eagle Broadband, Inc. has successfully closed $8.2 million in new financing led by The Keystone Equities Group (“Keystone”), which acted as a placement agent for the transaction.
Dave Weisman, CEO of Eagle Broadband, commented, “We are very pleased to have secured this funding to help support our capital needs and finance continued company growth.” Weisman added, “Over the last year, Eagle has repositioned itself with several key product and service offerings addressing high-growth areas.
“We have numerous initiatives underway in each of our core markets to drive revenue and profit growth. The proceeds of the offering give us the ability to further accelerate our engineering, sales, and marketing efforts within these markets to ensure the company’s long-term success.”
Keystone served as the company’s agent in offering 20 million shares of Eagle Broadband common stock to a group of investors at the closing price as of February 11, 2005 of $0.41. The net proceeds to Eagle Broadband from this offering, after placement agent fees and offering expenses will be approximately $7.52 million.
The net proceeds will be used to accelerate the company’s expansion plans and growth of Eagle’s three core focus areas: bundled broadband services, advanced Media Pro IP set-top boxes and SatMAX non-line-of-sight satellite communications system.
In addition, the funds will be used for general corporate purposes, which may also include acquisition of future businesses and/or complimentary products, reducing accounts payables and improving the company’s balance sheet, cash position and liquidity.
