AVCT - AVCT slips on plan to sell securities

AVCT (AVCT -6.9%) shares are down after the cloud communications company announced sale of equity securities to an institutional investor. The company will issue shares of a new series of convertible preferred stock, together with warrants, pursuant to the terms of the securities purchase agreement. Net proceeds will total $15M initially, plus an additional $5M subject to the satisfaction of certain conditions, including receipt of stockholder approval pursuant to Nasdaq listing rules. The security sale and the expected net proceeds from the firm's previously announced planned divestiture of its Computex business will be used to retire all of its existing debt.

For further details see:

AVCT slips on plan to sell securities