Illinois Superconductor Corp, which called off its initial public offering of one million shares last month because of general concerns about the market strength of technology stocks (CI No 3,159), has come up with money for product development and working capital elsewhere. The Mount Prospect, Illinois developer of high-temperature superconducting technology for the wireless telecommunications industry, says that it has secured a $15m financing facility from the New York-based fund advisory firm Brown Simpson LLC. In addition to the capital commitment, Brown Simpson will act as a strategic advisor to the company. The funds will be used primarily to support the commercial expansion of the company’s radio filter products which enhance the quality and capacity of cellular telephone networks. Under the terms of the financing commitment, Illinois Superconductor may issue up to $15m of convertible preferred stock in several tranches, and has received the first tranche in the amount of $3m. The preferred stock is convertible into common shares at current market prices.
