Sonic Innovations Inc, Salt Lake City, has entered into definitive agreements for the private placement of 3.2 million shares of common stock to a group of new and existing institutional investors for $12 million in gross proceeds. The company expects to close the transaction around mid-August, subject to customary closing conditions.

Piper Jaffray and Co acted as the sole placement agent in the private placement. Sonic Innovations intends to use the net proceeds from the private placement to expand its global retail operations.
The shares sold in the private placement have not been registered under the Securities Act of 1933, as amended, or state securities laws, and may not be offered or sold in the United States in the absence of an effective registration statement or exemption from applicable registration requirements. The shares were offered and sold only to institutional investors. Sonic Innovations has agreed to file a registration statement with the Securities and Exchange Commission covering the resale of the shares of common stock issued in the private placement.

[SOURCE: PR Newswire—First Call, August 9, 2006]