Cray Inc. Receives $10 Million in New Financing; Floating Conversion Prices in Debentures Deleted and Redemption Provisions Added.Business Editors SEATTLE--(BUSINESS WIRE)--Sept. 4, 2002 Global supercomputer supercomputer, a state-of-the-art, extremely powerful computer capable of manipulating massive amounts of data in a relatively short time. Supercomputers are very expensive and are employed for specialized scientific and engineering applications that must handle very leader Cray Inc. (Nasdaq:CRAY) today announced that it has raised $10 million from institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. in the form of common stock and warrants. These securities were sold under the Company's shelf-registration statement. The Company issued a total of 2,941,176 shares of Common Stock at $3.40 per share and four-year warrants covering 294,117 shares of Common Stock with an exercise price of $4.50 per share. The investors in this offering previously invested in the Company's fall 2001 convertible subordinated debenture subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before financing. Those debentures were convertible at the holder's option at $2.35 per share or, if lower, an alternative floating conversion price equal to 94% of the volume weighted average price of the Company's Common Stock at the time of conversion. The holders have agreed to delete the floating conversion price provisions so that the debentures are convertible at the option of the holders only at a set price of $2.35 per share. The holders also agreed that the Company could redeem the debentures if the market price of the Cray common stock exceeded $6.00 per share for twenty consecutive trading days In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. . The redemption price Redemption price See: Call price redemption price 1. The price at which an open-end investment company will buy back its shares from the owners. In most cases, the redemption price is the net asset value per share. 2. is 110% of the principal amount of the debentures plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. . The other terms of the debentures remain unchanged. "We are now engaged in multiple major projects which are sufficiently large In mathematics, the phrase sufficiently large is used in contexts such as:
About Cray Inc. Cray is the premier provider of supercomputing solutions for customers' most challenging scientific and engineering problems. Go to www.cray.com for more information about the company. Cray is a registered trademark of Cray Inc. All other trademarks are the property of their respective owners. |
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