Germantown,
MD, Telkonet, Inc. (AMEX: TKO), the leader in providing in-building broadband
access over existing electrical wiring, today
announced that it has completed a private placement of 2.4 million shares
of its
common stock to a single investor for gross proceeds of $6.0 million. No
underwriting commissions were paid in connection with this transaction. The
proceeds of this offering will be used for general working capital needs.
Telkonet also has issued to this investor warrants to purchase 1.56 million
shares of its common stock at an exercise price of $4.17 per share. These
warrants expire five years from the date of issuance.
The
common stock and warrants issued in the offering were sold pursuant to the
exemption provided by Section 4(2) of the Securities Act of 1933 and/or Rule
506
of Regulation D promulgated thereunder on the basis that the purchaser is
an
"accredited investor" as such term is defined in Rule 501 of Regulation D.
Telkonet has agreed to file a registration statement covering the shares
of
common stock and the shares issuable upon exercise of the warrants.
About
Telkonet
Telkonet
develops and markets technology for the transmission of high-speed voice,
video
and data communications over the existing electrical wiring within a building.
The revolutionary Telkonet iWire System™
utilizes
proven powerline communications (PLC) technology, which enables the delivery
of
commercial high-speed broadband access from an IP “platform” that is easy to
deploy, reliable and cost-effective by leveraging a buildings existing
electrical infrastructure. The building’s existing electrical wiring becomes the
backbone of the local area network, which converts virtually every
electrical outlet into a high-speed data port, without the costly installation
of additional wiring or major disruption of business activity.
The
Telkonet iWire System can be installed rapidly and offers a viable and
cost-effective alternative to the challenges of hardwiring and wireless local
area networks (LANs). Telkonet’s products are designed for use in commercial and
residential applications, including multi-dwelling units and the hospitality
and
government markets. Applications supported by the Telkonet “platform” include
but are not limited to: VoIP telephones, Internet connectivity, local area
networking, video conferencing, closed circuit security surveillance and
a host
of other information services. For more information, please visit
www.telkonet.com.
