Warwick-based Infinite Group, Inc., has entered into a three-year private equity agreement with Cookfield Holdings, Ltd., a private investment fund — pursuant to which CHF is obligated to purchase, subject to the fulfillment of specified conditions, up to 3.3 million shares of Infinite common stock over the next three years.
CHL has allocated up to $25 million to fund its purchase obligations.
The transaction was arranged by Jesup & Lamont Securities Corporation, a New York-based investment-banking firm.
Infinite’s right to draw upon this facility is subject to a number of limitations and conditions, including a limitation on the amounts sold to CHL within specified periods, and the effectiveness of a resale registration statement covering the securities to be purchased. Subject to these and other conditions and limitations, Infinite will have full control over the facility and is under no obligation to sell any shares to CHL. Any shares that are sold will be priced at 87.5 percent of the volume waited average market price of Infinite common stock during a fixed period prior to the sale, and will not be below a floor price that Infinite may establish in its discretion.
“The availability of this equity line will allow us to pursue research, development and commercialization efforts in applied photonics with financing in place,” said Bruce J. Garreau, the company’s chief financial officer. “This kind of financing option is very attractive to us since it gives us complete flexibility over timing and a substantial degree of control over pricing.”
Infinite Group focuses on laser material processing, advanced manufacturing methods and laser applications technology.
