Airborne Wireless Network prices public offering

Airborne Wireless Network (OTCQB: ABWN) has announced the pricing of an underwritten public offering of 8,000 units consisting of one share of Series A Convertible Preferred Stock and related warrants to purchase up to 24,000 shares of Preferred Stock, at a public offering price of USD 1,000 per unit, for gross proceeds of USD 8 million, excluding the proceeds, if any, from the exercise of the Warrants, the company said.

Each share of Preferred Stock is being sold together with (i) one Series 1 Warrant to purchase one share of Preferred Stock, (ii) one Series 2 Warrant to purchase one share of Preferred Stock, and (iii) one Series 3 Warrant to purchase one share of Preferred Stock.

The Preferred Stock has an initial stated value of USD 1,150 and is convertible into shares of the company´s common stock at a conversion price equal to the lesser of (a) USD 0.71, subject to certain adjustments, or (b) 82.5% of the lowest volume weighted average price of the company´s Common Stock during the five trading days ending on, and including, the date of the notice of conversion.

For the first 15 calendar days following the filing of the certificate of designations for the Preferred Stock, the conversion price is subject to a floor of USD 0.25 per share, except in the event of anti-dilution adjustments. Each Warrant will have an initial exercise price of USD 1,000 per share of Preferred Stock. The Series 1 Warrants, Series 2 Warrants and Series 3 Warrants will be immediately exercisable and will expire on the three-month, six-month, and twelve-month anniversary of the original issuance date, respectively.

Maxim Group LLC is acting as sole book-running manager for the offering.

The company intends to create a high-speed broadband airborne wireless network by linking commercial aircraft in flight. It is projected that each aircraft participating in the network will act as an airborne repeater or router, sending and receiving broadband signals from one aircraft to the next and creating a digital information superhighway in the sky. For further information see: