VRINGO INVESTORS EXERCISE WARRANTS, COMPANY RECEIVES $10 MILLION IN CASH
June 20 2014 - 08:30AM
Vringo Plans
Expansion and Escalation of Global Litigation and Licensing
Programs
NEW YORK - June 20, 2014 - Vringo,
Inc. (NASDAQ: VRNG) today announced that it plans to expand and
escalate its global litigation and licensing programs following
receipt of $10 million in cash from the exercise of outstanding
warrants by three institutional investors.
The investors exercised 5,697,227
warrants, which are part of a series of warrants that expire in
three years, on July 19, 2017, and have an exercise price of $1.76
(the "July 2017 Warrant Series"). The exercised warrants
represent 58% of the July 2017 Warrant Series. Vringo
directors and officers hold 70% of the remaining July 2017 Warrant
Series.
Vringo and the investors who
exercised the warrants entered into an agreement pursuant to which
Vringo issued 5,412,366 new warrants that expire in one year, on
June 21, 2015, and have an exercise price of $5.06, 44% above
yesterday's closing price of Vringo common stock. The new
warrants do not contain cashless exercise or anti-dilution
features, and Vringo is under no obligation to register the shares
of common stock underlying them.
"Vringo plans to expand and
escalate its global litigation and licensing programs in the near
term in an effort to realize revenue from companies that are
selling or attempting to sell products without paying Vringo
appropriate royalties for use of its technology," said Andrew D.
Perlman, Chief Executive Officer.
"Vringo has recently posted bonds
to secure injunctions against ZTE and its local subsidiaries in
Germany and Brazil. With today's cash infusion, Vringo will
have additional cash to further escalate and expand its mobile
telecommunications licensing programs against ZTE and other
companies. Vringo will also continue its pursuit to defend
and collect its judgments against Google," Mr. Perlman
continued.
About
Vringo, Inc.
Vringo, Inc. is engaged in the
development and monetization of intellectual property worldwide.
The Company's intellectual property portfolio consists of over 600
patents and patent applications covering telecom infrastructure,
internet search and mobile technologies. The Company's patents and
patent applications have been developed internally and acquired
from third parties. For more information, visit:
www.vringo.com.
Forward-Looking Statements
This press release includes
forward-looking statements, which may be identified by words such
as "believes," "expects," "anticipates," "estimates," "projects,"
"intends," "should," "seeks," "future," "continue," or the negative
of such terms, or other comparable terminology. Forward-looking
statements are statements that are not historical facts. Such
forward-looking statements are subject to risks and uncertainties,
which could cause actual results to differ materially from the
forward-looking statements contained herein. Factors that
could cause actual results to differ materially include, but are
not limited to: our inability to license and monetize our patents,
including the outcome of the litigation against online search firms
and other companies; our inability to monetize and recoup our
investment with respect to patent assets that we acquire; our
inability to develop and introduce new products and/or develop new
intellectual property; new legislation, regulations or court
rulings related to enforcing patents, that could harm our business
and operating results; unexpected trends in the mobile phone and
telecom infrastructure industries; our inability to raise
additional capital to fund our combined operations and business
plan; our inability to maintain the listing of our securities on a
major securities exchange; the potential lack of market acceptance
of our products; potential competition from other providers and
products; our inability to retain key members of our management
team; the future success of Infomedia and our ability to receive
value from its stock; and other risks and uncertainties and other
factors discussed from time to time in our filings with the
Securities and Exchange Commission ("SEC"), including our annual
report on Form 10-K filed with the SEC on March 10, 2014.
Vringo expressly disclaims any obligation to publicly update any
forward-looking statements contained herein, whether as a result of
new information, future events or otherwise, except as required by
law.
Contacts
Investors and Media:
Cliff Weinstein
Executive Vice President
Vringo, Inc.
646-532-6777
cweinstein@vringoinc.com
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Vringo, Inc. via Globenewswire
HUG#1797730
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