(Source: Datamonitor)
Artificial Life, a provider of mobile broadband 3G technology, and 3M Company have signed a securities purchase agreement and a strategic alliance agreement. Under the purchase agreement, Artificial Life, sold to 3M 6.45 million shares of its common stock at a price of $1 per share, for an aggregate consideration of about $6.45 million.
The basic and diluted number of shares outstanding immediately after the transaction is 56.98 million and 64.47 million respectively. The proceeds will fund an equity contribution by 3M, representing a 10% equity interest in Artificial Life, calculated on a fully diluted basis.
Besides the investment, 3M and Artificial Life have entered into an alliance agreement outlining the parties intent to collaborate in the coming years in projects related to the R&D of new mobile device products and technology.
In addition, the alliance agreement provides that 3M and Artificial Life plan to cooperate in connection with the marketing of certain of Artificial Life's existing and new products.
Stefan Gabriel, president of 3M new ventures, said: "We are excited to become an investor in Artificial Life. We are looking forward to collaborating with Artificial Life on a number of exciting technology applications in these fast growing markets all across the wide range of 3M businesses."
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