In a recent news release, Inventergy Global, Inc. (NASDAQ: INVT) announced its entry into a definitive agreement with institutional investors for the private placement of shares of its Series E convertible preferred stock and warrants to purchase shares of common stock. Gross proceeds from this placement total $3 million. Of this, Inventergy plans to use $2.5 million to redeem roughly 70 percent of existing shares of Series C convertible preferred stock, with the remaining net proceeds serving as working capital.
The Series E preferred stock to be issued as part of this placement will include a cash dividend of five percent per annum, as well as a conversion price of $2.005 per share, subject to future adjustment. The Series E stock is initially convertible into approximately 1.47 million shares of common stock or, at the option of Inventergy, may be redeemed at premiums ranging from 26 percent to 50 percent, depending upon the redemption date. Inventergy will also issue warrants to purchase an aggregate of just over 1.27 million shares of common stock to investors participating in this placement, which will be exercisable for a term of five years beginning six months after the closing of the transaction. In last week’s news release, the company expected this transaction to close on or about July 25, 2016, subject to the satisfaction of closing conditions.
“We are thankful for the support of the investors in this transaction,” Joe Beyers, chief executive officer of Inventergy, stated in the news release. “We believe this transaction will provide us with runway to drive our monetization efforts toward very meaningful milestones.”
This funding milestone caps off what has been an eventful period for Inventergy. In June, the Silicon Valley intellectual property company announced entry into a definitive agreement with GTX Corp. (OTC: GTXO) through which subsidiary Inventergy Innovations, LLC, became the majority owner of three patents relating to remotely configurable tracking and location devices. The next week, Inventergy further expanded upon its IP portfolio when it was granted 23 new patents in the telecommunications and mobile broadband space. Earlier this month, Inventergy built on this progress when its subsidiary entered into a definitive agreement with Pabellon, Inc. to become the exclusive representative and business development partner of Pabellon for its wireless power, data transfer and sensing technology, along with associated patents.
“We continue to invest in enhancing our patent portfolio and bringing patent applications to issuance so that we may broaden our monetization revenue stream,” added Beyers. “This requires a deep technical understanding of our technology assets and the ability to effectively respond to patent examination issues from various patent offices worldwide.”
For more information, visit www.inventergy.com
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