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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): October 31, 1997
Illinois Superconductor Corporation
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(Exact Name of Registrant as Specified in Charter)
Delaware 0-22302 36-3688459
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(State or Other Jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.
451 Kingston Court, Mount Prospect, Illinois 60056
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (847) 391-9400
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ITEM 5. OTHER EVENTS.
On October 31, 1997, the Registrant issued the press release attached hereto as
Exhibit 99.1 announcing its issuance of $3.5 million of convertible preferred
stock to two new investors and of $1.5 million of convertible preferred stock
under its existing $15 million financing facility. The information contained
in this press release is incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
99.1 Press Release of Registrant dated October 31, 1997
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Illinois Superconductor Corporation
Dated: October 31, 1997 By: /s/ EDWARD W. LAVES
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Edward W. Laves
President and Chief Executive Officer
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Exhibit Index
Exhibit # Item
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99.1 Press Release
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EXHIBIT 99.1
ILLINOIS SUPERCONDUCTOR CLOSES $5 MILLION EQUITY FINANCING
Mount Prospect, IL (October 31, 1997) -- Illinois Superconductor Corporation
(Nasdaq: ISCO) announced today that it has received $5 million of equity
financing, consisting of $3.5 million from new investors, Elliott Associates,
L.P. and Westgate International, L.P., and $1.5 million from existing
investors, Southbrook International Investments, Ltd. and Brown Simpson Asset
Management, LLC. The funds will be used for working capital and general
corporate purposes, primarily to support the continued commercialization of the
Company's wireless filter products.
"These investments enhance our financial stability as we work to
accomplish our strategic goals, including continued penetration of key cellular
accounts; accelerated commercial deployment of our proprietary transmitter and
duplexer products; and pursuit of new market opportunities," said Ted Laves,
president and chief executive officer of Illinois Superconductor. "We are
especially pleased to welcome our new institutional investors, Elliott
Associates and Westgate International."
In June, Illinois Superconductor entered a financing commitment with
Southbrook whereby Illinois Superconductor may issue up to $15 million of
convertible preferred stock in several separate tranches. This $1.5 million
investment brings to $6 million the amount of stock issued to Southbrook and
Brown Simpson.
The $3.5 million from Elliott Associates and Westgate International was
financed under similar terms as the Southbrook investment. The Company has
also issued Elliott and Westgate warrants to purchase a total of 34,782 shares
of its common stock at a 25% premium to Illinois Superconductor's recent
closing prices. The warrants are exercisable over a four year time period.
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The securities offered have not been registered under the Securities Act
of 1933 and may not be offered or sold in the United States absent registration
or an applicable exemption from the registration requirements of the Securities
Act of 1933. The shares of common stock underlying the preferred stock and
warrants issued to Southbrook, Brown Simpson, Elliott Associates and Westgate
International are subject to certain registration rights.
Illinois Superconductor Corporation is a leader in the commercialization
of high temperature superconducting (HTS) technology for the wireless
telecommunications industry. The company develops, manufactures, and markets
radio frequency (RF) products to enhance the quality and capacity of cellular
telephone and other wireless telecommunications services.
