P-Com sets reverse stock split

P-Com, a maker of high-speed wireless Internet access equipment for phone companies, raised $8 million in equity financing, the company said Tuesday. Campbell, Calif.-based P-Com will use the funding mostly for working capital purposes but will also pay suppliers and retire some debt. The company said it expects to achieve break-even cash flow by the end of 2002. As part of the funding, P-Com will issue about 57.3 million shares to large shareholders. Moreover, the company said that it will enact a reverse stock split, effective June 27, and issue one new share for every five existing shares. The split will not affect the 57.3 million new shares. P-Com also announced that it restructured all but $1.7 million of its remaining $29.3 million of debt. The $1.7 million debt will mature in November 2002. P-Com announced a restructuring plan last January, saying it would reduce expenses, improve its balance sheet, and renegotiate debt.