Deal with Spreadtrum also includes product development contingencies
By Devika Patel
Knoxville, Tenn., Nov. 1 - Zoom Technologies, Inc. completed a $2.9 million private placement of stock with Spreadtrum Communications, Inc. on Oct. 26, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The company sold 1,676,300 common shares at $1.73 per share. The price per share reflects a 17.62% discount to the $2.10 closing share price on Oct. 25.
In addition, the company agreed to design and develop all of its products to integrate and operate solely with the investor's products and agreed to not develop any products to operate with competitive products for three years.
Spreadtrum also may nominate one director to the company's board of directors.
Based in Beijing, Zoom produces electronic components for third generation mobile phones, wireless communication circuitry and related software products.
| Issuer: | Zoom Technologies, Inc.
|
| Issue: | Common stock
|
| Amount: | $2.9 million
|
| Shares: | 1,676,300
|
| Price: | $1.73
|
| Warrants: | No
|
| Investor: | Spreadtrum Communications, Inc.
|
| Settlement date: | Oct. 26
|
| Stock symbol: | Nasdaq: ZOOM
|
| Stock price: | $2.04 at close Oct. 26
|
| Market capitalization: | $32.2 million
|
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