Deal raises funds for sales and marketing expansion, working capital
By Devika Patel
Knoxville, Tenn., Dec. 5 - Vringo, Inc. said it settled an $850,000 private placement of stock.
The company sold 817,303 common shares at $1.04 per share. The per-share price is a 20% discount to $1.30, the Nov. 30 closing share price, the company said in a press release.
The company also said it raised $2.5 million from the conversion of $2.5 million convertible notes into common stock. The convertibles were sold in a bridge financing to Benchmark Capital and DAG Ventures, among other investors, in July. The convertibles were converted into stock at a 10% discount to the price of the shares sold in the placement.
Proceeds will be used for sales and marketing expansion, working capital and general corporate purposes.
"We are thrilled to announce the closing of this financing, including the conversion of the bridge notes previously issued in the financing led by Benchmark and DAG," chief executive officer Jon Medved said in the release. "We have strengthened our cash position, eliminated all of our debt and are continuing to build our future business pipeline. We believe our innovative social mobile applications, early lead in the market and strengthened balance sheet will allow us to make further advancements into the fast-growing mobile social market."
"The proceeds of this financing will significantly improve our capital structure as well as enable us to maintain our strategic vision of mobile social applications such as Facetones becoming more mainstream," Vringo's president, Andrew Perlman, added in the release. "We have reduced our expenses while continuing to expand our revenues. This additional funding will allow us to grow our business and launch additional software platforms with partners around the world."
The provider of software platforms for mobile social and video applications is based in New York.
| Issuer: | Vringo, Inc.
|
| Issue: | Common shares
|
| Amount: | $850,000
|
| Shares: | 817,303
|
| Price: | $1.04
|
| Warrants: | No
|
| Announcement date: | Dec. 5
|
| Stock symbol: | Amex: VRNG
|
| Stock price: | $1.34 at close Dec. 2
|
| Market capitalization: | $8.41 million
|
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