San Diego, California – (The Hosting News) – September 7, 2006 – Video networking transmission VoIP products firm, Path 1 Network Technologies, has secured $405,000 in a private placement with accredited investors, of 1,620,000 of the Company’s Common Stock to existing accredited stockholders.
In addition, compensation amounting to $40,500, was waived by the Company’s President and Chief Executive Officer, Thomas Tullie, while each member of the Company’s Board of Directors waived monthly cash compensation for the entire year for an aggregate amount of $96,000.
Mr. Tullie commented,
”We are pleased to have completed this private placement from an investor group made up entirely of existing Path 1 investors. I believe this investment by our largest shareholders represents a vote of confidence in our strategic direction and vision to successfully compete in the emerging video over IP equipment market. Furthermore, as a clear indication that Path 1’s senior leadership and Board are unified in our commitment, we have volunteered to forgo a sizable portion of compensation to help cut expenses and put the Company on the path achieving our business objectives.”
In connection with the financing, The Company issued to Laurus Master Fund, Ltd. a warrant to purchase up to an aggregate of 350,000 shares of common stock of the Company with an exercise price of $0.50 per share in exchange for certain waivers under its existing agreements with the Company. The warrant is exercisable until August 29, 2011 and may be exercised by Laurus only pursuant to a cash payment.
Path 1 Network Technologies Inc. is a provider of video gateway products that are desgiend to enable the conversion and distribution of real-time, broadcast-quality video over Internet Protocol (IP) through both public and private networks. From the delivery of live MPEG-2, MPEG-4, and VC-1 standard definition and high definition (HD) broadcasts to Video on Demand (VOD), Path 1’s video infrastructure platforms were developed to allow broadcasters, cable, telco, satellite and mobile operators to transmit high-quality point-to-point, multipoint and multiplexed video across town or around the world.
To learn more, please visit: www.path1.com.