Monday, November 7, 2005

GigaBeam Raises $18.9 Million for "WiFiber"

GigaBeam, a start-up based in Herndon, Virginia, announced the private placement of $18.9 million stated value of the company's Series B convertible preferred stock and common stock purchase warrants to purchase approximately 1,302,200 shares of common stock for an aggregate purchase price of $18.9 million to a limited number of institutional investors. The conversion price of the preferred stock and the exercise price of the warrants are approximately $7.62 and $7.98 respectively.

GigaBeam WiFiber operates in the 71-76 GHz and 81-86 GHz radio spectrum bands. This portion of the radio frequency spectrum has been authorized by the FCC for wireless point-to-point commercial use. Use of these frequency bands for commercial use was pioneered by GigaBeam's founders.

GigaBeam's technology, utilizing these large blocks of authorized contiguous spectrum, enable multi Gigabit-per-second wireless communications using Gigabit Ethernet. The current speed achieved by GigaBeam's WiFiber 2 and anticipated WiFiber G Series product lines is one Gbps. GigaBeam also plans deployment of future products capable of 10 Gbps.

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