Airspan Announce Preferred Stock Sale

No need to speculate anymore.

In another twist in our plot, Airspan announces yet another preferred stock sale to Oak Investment Partners.
Neither Axxcelera nor Gilat managed to reach an agreement.

The press release explained the process:

Before entering into the Purchase Agreement with Oak, the Company conducted an extensive and lengthy strategic review process overseen by a special committee of independent directors, which retained Stephens Inc. as its financial advisor in February 2009 to assist with the process. While extensive negotiations were undertaken with several parties, no agreements could be reached on terms acceptable to the Special Committee. Following the termination of discussions with one such party on August 10, 2009, Oak made the offer which, following approximately three weeks of negotiations between the parties, resulted in the execution and delivery of the Purchase Agreement on September 1, 2009.

And Airspan’s dire financial situation:

Without the new investment, the Company would deplete its cash resources in the fourth quarter of 2009.

Either Oak Investment partners believe in Airspan’s turnaround or think future negotiations will help them return their investment. It is also obvious that Airspan cannot maintain their current burn rate and in need of extreme measures to save the failing company.