Wireless broadband solutions company Alvarion Ltd. (Nasdaq: ALVR; TASE:ALVR) is raising $3 million in a private investment in public equity (PIPE) offering to Israeli investors, sources inform “Globes.” The offering will be conducted at a discount of 10% on the share price. Before this latest round of financing, Alvarion had less than $5 million in cash.Alvarion saw its share price fall 1.95% on Nasdaq yesterday to $2.51, giving a market cap of $15.87 million. Last week the company reported revenue of $8.5 million for the first quarter of 2013, down 45% from the corresponding quarter of 2012 but up 4.5% from the preceding quarter. GAAP net loss was $7 million, of which $4 million was from ongoing operations. Non-GAAP net loss was $3.2 million.
Alvarion acting CEO Assaf Katan and CFO Avi Stern said in the report that the company had a lack of working capital, which was adversely affecting its ability to fulfill orders, and that they believed that raising capital would allow them to deal with the topic.