Subscribe To 1000 Penny Stocks Feed For News From Around The OTCBB
Jul 31, 2008 9:00:00 AM
SANTA ANA, Calif., July 31 /PRNewswire-FirstCall/ -- Raptor Networks Technology, Inc. (OTC Bulletin Board: RPTN), provider of the world's first distributed network switching architectures, today announced the completion of a private placement transaction with three institutional investors. The terms of the transaction, which closed today, include the issuance of senior secured convertible notes, warrants, and shares of the Company's common stock for aggregate gross proceeds of $1,250,000. The Company intends to use these funds for general corporate purposes. The Company plans to file the transaction documents, which contain additional detailed information regarding the financing, with the Securities and Exchange Commission after the market closing.
In light of a slower than expected growth in revenue, and as disclosed in the Company's previous public filings, a range of business alternatives focused on preserving enterprise value, including strategic partnerships, licensing and shifting the Company from an operating to a licensing model have been under consideration, should they become necessary. Our independent auditors have questioned our ability to continue as a going concern in our Annual Report for the period ended December 31, 2007 and before, and as we closely monitor the performance of our sales initiatives over the coming months, this financing affords us the time to carefully weigh and consider a broad range of options for the Company's future.