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LightPath Technologies makes $1 million investment in LightChip

US-based LightPath Technologies Inc., producer of Gradium glass products, has invested US$ 1 million in LightChip Inc. as part of a US$ 16 million second equity round.
LightChip is an optical network…

US-based LightPath Technologies Inc., producer of Gradium glass products, has invested US$ 1 million in LightChip Inc. as part of a US$ 16 million second equity round. LightChip is an optical networking company based in Salem, New Hampshire. In a recent press release, LightPath said the equity round was priced at a multiple of the original 1998 round in which it invested US$ 1.2 million of a US$ 7.2 million funding. LightChip also sold shares to Morgenthaler Venture Partners, AT&T Venture Fund and J.P. Morgan Ventures. The company said it maintains an 18.3% stake in LightChip, which adjusts to 14.6% given full consideration to all potential dilutive shares. LightPath also said that since the completion of its own US$ 4.1 million private placement in November, it has received an additional US$ 1.7 million from the exercise of existing warrants and other options as well as a stock purchase by a new director. Shares of LightPath recently traded at 11 3/8, up 1, or 9.6%, on Nasdaq volume of 934,800 shares. Average daily volume is 315,432 shares.

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