UTStarcom Inc. will receive fresh investment worth $ 48.5 million from a consortium including the municipality of Beijing, Beijing Development Area with an aim to consolidate the company’s presence in China.

To facilitate the investment, UTStarcom will issue some 22 million shares at a 1.9% premium to Friday''s closing price of $2.16 as part of the investment.

The development will also lead to three new directors joining the company. Existing three directors namely Allen Lenzmeier and Jeff Clarke have resigned as well as President & CEO, Blackmore will retire.

Jack Lu will replace Peter Blackmore.