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Tut plans $15M private placement.(Tut Systems )(Brief Article)

Byline: Ed Gubbins

Tut Systems will conduct a private sale of common stock and warrants for $14.9 million, the equipment vendor announced today.

Tut will issue 5.535 million shares of common stock this week at $2.70 per share and warrants to purchase an additional 2.7675 million. Between January 2006 and 2010, the warrants will be exercisable at $4.25 per share. Tut can also call the warrants if the stock price exceeds $7.44 per share for 20 days in a row. If exercised in full, the warrants would bring the company $11.8 million, Tut said.

The company intends to use the funds for "general working capital," according to a statement issued today, in which the company's Chairman and CEO Sal D'Auria said the private placement would give Tut "a fully-funded business plan" that would allow it to achieve positive cash flow in the second half of next year. …

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