BOSTON, Jan. 25 /PRNewswire-FirstCall/ -- Ambient Corporation (OTC Bulletin Board: ABTG) today announced steps it has taken to position itself for future growth. The Company issued 666,666,667 restricted shares of its Common Stock to its largest shareholder upon its conversion of the remaining balance of $10,000,000 of outstanding debentures. Following the conversion, the Company has eliminated all of its long-term debt.
The fund has also increased its equity-based credit line for the Company by an additional $5 million to a total of $8 million, the proceeds of which were deposited in an escrow account. With $8 million now available for working capital, the Company can draw down on the escrow account as needed if the Company's available operating funds drop below $1.5 million.
"The equity conversions have enabled us to extinguish debt from our balance sheet and strengthen our financial position, allowing us greater flexibility to capitalize on strategic and financial opportunities. Combined with the increase in the funding commitment, Ambient is well positioned to capture the opportunities of today while we continue to develop next generation, environmentally responsible products and incorporate additional applications in our smart grid platform," stated John J. Joyce, President and CEO of Ambient Corporation.
Mr. Joyce continued, "We look forward to the opportunities and challenges of collaborating with our partners to bring to the utility market a true smart grid solution enabling not only smart metering but the robust platform utilities need to more efficiently and economically offer consumers real choices."
Additional information relating to the transactions described above is included in Ambient's Current Report on Form 8-K, which Ambient filed with the Securities and Exchange Commission on January 22, 2010.
About Ambient Corporation
Ambient designs, develops and markets Ambient Smart Grid® communications technologies and equipment. Using open standards-based technologies along with in-depth industry experience, Ambient provides utilities with solutions for creating smart grid communication platforms and technologies. Headquartered in Newton, MA, Ambient is a publicly traded company (OTC Bulletin Board: ABTG). More information on Ambient is available at www.ambientcorp.com.
This press release contains forward-looking statements that involve substantial uncertainties and risks. These forward-looking statements are based upon our current expectations, estimates and projections about our business and our industry, and that reflect our beliefs and assumptions based upon information available to us at the date of this release. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including but not limited to, changes in economic conditions generally and our market specifically, market acceptance of new products, changes in economic conditions generally and the smart grid market specifically, changes in technology, legislative or regulatory changes that affect us, the availability and sufficiency of working capital, introduction of competing products and the risks and uncertainties discussed under the heading "RISK FACTORS" in Item 1a of our Annual Report on Form 10-K for the fiscal year ended December 31, 2008, and in our other filings with the Securities and Exchange Commission. We undertake no obligation to revise or update any forward-looking statement for any reason.
Ambient, Ambient Smart Grid, Communications for a Smarter Grid and AmbientNMS are registered trademarks of Ambient Corporation with the U.S. Patent and Trademark Office.
SOURCE Ambient Corporation