Company also announces plans to merge its operations with Zlango Ltd.
By Devika Patel
Knoxville, Tenn., July 27 - Vringo, Inc. said it completed a $2.5 million private placement of convertible notes. Benchmark Capital and DAG Ventures were among the investors.
The 1.25% notes mature on Jan. 1, 2012. When the company completes a financing, the notes will automatically convert into the securities sold in the financing at a conversion price equal to the lower of the closing price of the company's common stock on July 27, the closing price of the stock on the settlement date or a 10% discount to the securities issued in the financing.
Vringo also announced that it had executed a letter of intent to acquire and merge operations with Zlango Ltd., a mobile messaging company. Vringo will acquire substantially all of Zlango's assets in exchange for 3 million common shares and a retention package for Zlango's management, which will be comprised of options for 250,000 common shares. Investors Benchmark Capital and DAG Ventures, which are affiliates of Zlango, agreed to enter into the convertibles' financing in connection with the merger.
The provider of software platforms for mobile social and video applications is based in New York.
| Issuer: | Vringo, Inc.
|
| Issue: | Convertible notes
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| Amount: | $2.5 million
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| Maturity: | Jan. 1, 2012
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| Coupon: | 1.25%
|
| Warrants: | No
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| Investors: | Benchmark Capital and DAG Ventures
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| Settlement date: | July 27
|
| Stock symbol: | Amex: VRNG
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| Stock price: | $1.53 at close July 26
|
| Market capitalization: | $10.44 million
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