Tera Computer Co, the ever developing Seattle-based supercomputer firm that raised $4.1m in a private placement in April (CI No 3,131) says that its highly successful warrant redemption and exercise offer completed last week raised approximately $10.4 million from the exercise of some 2.1 million warrants, or 95% of those outstanding. With these exercises, the company is issuing approximately 2.6 million additional shares of common stock, increasing the number of shares outstanding to about 9.6 million. The company has redeemed all of the unexercised redeemable warrants. The proceeds generated are to provide Tera with working capital to complete testing of its initial MTA system prototypes, and to fund manufacturing start- up costs and inventory acquisitions associated with the production and delivery of its first commercial MTA systems.
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