Clearwire just announced plans to raise up to $345 million by selling additional shares of stock, part of the mobile broadband company’s strategy to address its cash crunch.
“The company plans to use the net proceeds for general corporate and working capital purposes, including the deployment of mobile 4G LTE technology alongside the mobile 4G WiMAX technology currently on its network and for the operation and maintenance of its networks,” says Clearwire in a news release.
Clearwire today said it plans to offer $300.0 million of its Class A Common Stock in a registered public offering, and will also grant underwriters a 30-day option to purchase up to an additional $45 million of its Class A Common Stock.
The news follows a deal last week in which the company’s majority owner, Sprint, agreed to provide Clearwire with as much as $1.6 billion in funding over the next four years. A portion of that money from Sprint would come from matching the funds raised in the stock offering announced today.
That deal with Sprint last week allowed Clearwire to make a $237 million debt payment that it had considered skipping to preserve cash.
Previously on GeekWire: Can struggling Clearwire reverse the curse of this bad-luck office building?