eMagin Corp Retires $6 Million Debt

eMagin Corporation, a leader in OLED technology, today announced that it has closed a transaction with an investor to raise $4.033 million through the issuance and sale of Series B Convertible Preferred Stock. The proceeds of the sale were used exclusively to fully retire the company’s $6 million outstanding 8% Senior Secured Convertible Notes that were due on December 22, 2008.

As part of this transaction, the investor was issued approximately 1,875,467 warrants to purchase common stock shares. These warrants have an exercise price of $1.03 per share and a life of five years from the closing date of the transaction.

“Over the past two quarters, we have substantially reduced costs, improved profitability and generated nearly $2 million in EBITDA,” said Andrew Sculley, eMagin’s chief executive officer. “Last quarter we generated net profits. This transaction, which fully retires our convertible note debt, eliminates about $480,000 of annual debt service and leaves us in a much improved financial position as we continue to execute on our plan to sustain profitable growth.”

“We believe that our greatly improved and simplified capital structure will allow investors to focus more on actual performance and customers to focus more on our products,” Mr. Sculley continued. “We are also pleased on behalf of the shareholders that the retirement of the Notes has occurred at a conversion price reflecting a considerable premium to the current stock price. Finally, we are grateful for the vote of confidence that the Investors and the other converting note holders have shown in the company and its employees.”