Sorrento Completes Stock Placement
"In light of market conditions and a concern about shareholder dilution, Sorrento opted for a conservative financing agreement," said Joe Armstrong, Sorrento Networks' chief financial officer. "The company remains committed to pursuing all options for long-term financing aimed at funding the continued rapid growth of our optical subsidiary. We are extremely positive about Sorrento's ability to penetrate and gain market share in the rapidly growing metro and regional markets."
In the transaction, the company issued 1,525,995 shares of common stock. In addition to the common stock, the company issued 381,499 warrants exercisable at $8.19 per share under certain conditions.