SPEEDCOM secures funding

By Susan Rush
from BroadbandWeek Direct, May 9, 2002

Fixed wireless broadband equipment provider SPEEDCOM Wireless Corp. snags a $1 million secured loan.

The company intends to use the funds to accelerate the launch of its SPEEDLAN 9000 products, a line of wireless Ethernet routers. The SPEEDLAN 9000 provides a platform that enables the user to choose between mesh, star, or a point-to-point deployment. The company's division Wave Wireless Networks is slated to begin shipping the SPEEDLAN 9000 on June 7.

"(The funding) bridges our working capital needs until we can find and complete a strategic transaction, beneficial to shareholders that brings in substantial equity funding," says Michael McKinney, SPEEDCOM CEO.

The funding was achieved through a sale of secured notes - no warrants or other derivative securities were issued. Three unnamed institutional investors made the loan at an interest rate of 15 percent per annum.

Following the financing deal, the company is left with roughly $1.1 million in debt.