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eMagin Corp to Retire $6 Million Debt

^{Published on 2008-12-18 11:30:31 - Market Wire}
 

BELLEVUE, Wash.--([ BUSINESS WIRE ])--eMagin Corporation (OTCBB:EMAN), a leader in OLED technology, today announced that it has signed a definitive agreement to raise $4,033,000 through the issuance and sale of its Series B Convertible Preferred Stock. Upon the closing of the transaction, the proceeds of the sale, will be used exclusively to fully retire any of the Company's outstanding 8% Senior Secured Convertible Notes, which mature on December 21, 2008, and where the holders had not elected to convert to common or exchange for Series B Convertible Preferred Stock prior to the maturity date.

The Series B Convertible Preferred Stock is convertible into shares of common stock of the Company at a conversion price that equates to $0.75 per common share, which is the same conversion price that the Notes were convertible into shares of common stock. The Series B Convertible Preferred Stock has a stated value of $1,000 per share, has no dividend unless one is declared on the common, and has no mandatory redemption date. The Company believes it will be able to include the Series B Convertible Preferred Stock as part of its equity capital for regulatory and other purposes. The conversion price represents a 97% premium over the closing price on Wednesday December 17, 2008.

The securities that the Company is selling in the private placement will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), and are being sold in reliance upon exemptions from the registration requirements of the Securities Act pursuant to Regulation D promulgated under the Securities Act. Therefore, such securities 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 and any applicable state securities laws. This press release does not constitute an offer to sell any securities or a solicitation of an offer to purchase any securities.

About eMagin Corporation

A leader in OLED microdisplay technology and personal display systems, eMagin integrates high-resolution OLED microdisplays with magnifying optics to deliver virtual images comparable to large-screen computer and television displays in portable, low-power, lightweight personal displays. eMagin microdisplays provide near-eye imagery in a variety of products from military, industrial, medical and consumer OEMs. The Company's own Z800 3DVisor provides 3D stereovision and headtracking for PC gaming, training and simulation, immersion therapy, and other applications. eMagin's microdisplay manufacturing and R&D operations are co-located with IBM on its campus in East Fishkill, New York. System design facilities and sales and marketing are located in Bellevue, Washington. More information about eMagin and its products is available at [ www.emagin.com ].

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including those regarding eMagin Corporation's expectations, intentions, strategies and beliefs pertaining to future events or future financial performance. Actual events or results may differ materially from those in the forward-looking statements as a result of various important factors, including those described in the Company's most recent filings with the SEC. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. The business and operations of the Company are subject to substantial risks which increase the uncertainty inherent in forward-looking statements. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements.