Deal sells 21-month notes with warrants to fund monetization efforts
By Devika Patel
Knoxville, Tenn., May 4 – Vringo, Inc. said it has arranged a $12.5 million registered direct offering of senior secured convertible notes.
The company will sell 125 units of $100,000 of senior secured convertible notes and a warrant for 43,000 common shares at $100,000 per unit.
The 8% notes, which mature in 21 months, are initially convertible at $1.00 per share.
The warrants are exercisable for a total of 5,375,000 shares at $1.00 for five years.
The strike price and conversion price reflect a 40.85% premium to the May 1 closing share price of $0.71.
Proceeds will be used to enhance the company’s monetization efforts.
The mobile technology company is based in New York.
| Issuer: | Vringo, Inc.
|
| Issue: | Units of $100,000 of senior secured convertible notes and a warrant for 43,000 common shares
|
| Amount: | $12.5 million
|
| Units: | 125
|
| Price: | $100,000
|
| Maturity: | 21 months
|
| Coupon: | 8%
|
| Conversion price: | $1.00
|
| Warrants: | For 5,375,000 shares (warrants for 43,000 shares per unit)
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.00
|
| Pricing date: | May 4
|
| Stock symbol: | Nasdaq: VRNG
|
| Stock price: | $0.71 at close May 1
|
| Market capitalization: | $62.59 million
|
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