NEW YORK, Sept. 14, 2016 /PRNewswire/ -- Spherix
Incorporated (Nasdaq: SPEX) an intellectual property
development company committed to the fostering of technology and
monetization of intellectual property, today issued a letter to
shareholders.
Dear Fellow Spherix Shareholder,
The past year has been a fruitful one for our Company as we have
executed on several key initiatives designed around building a
solid foundation from which we will create lasting value. On behalf
of all of the hard working people at Spherix and the dedicated
investors that have given us their constant support, I am pleased
to update you on the progress that we have made over the last year
and to summarize our substantial opportunities that await us in the
years ahead. All long-term growth strategies require diligent
focus, measured risk taking and careful execution. As we look
forward to the next year, we remain confident that our business
plan takes into account each of these pillars of success and
positions us well to achieve our full potential.
New Lawsuits
Over the past twelve months, we have made outstanding progress
on our strategy to monetize our existing assets and generate cash
flows through the enforcement of our valuable patents.
The Company's license agreement with RPX Corporation in May,
generated millions in revenue. Further, it resulted in the
cancelation of preferred stock held by RPX with an original book
value of over $30 million and it
removed all restrictions and liens controlled by RPX. The RPX
license demonstrated the value of our patents.
Over the past year, we have recognized the power of strong
strategic partnerships as a means to achieving our goals. With this
in mind, we entered into a collaborative agreement with Equitable
IP to monetize a portion of Spherix's patent portfolio. Equitable
IP is a patent enforcement and monetization fund that has brought
together key leadership from the areas of investment fund
management, patent litigation, and patent monetization strategy.
Our monetization partnership with Equitable IP has resulted in the
filing of nine new patent infringement lawsuits against defendants
with a combined market capitalization of approximately $48 billion. Defendants include Frontier
Communications, Cincinnati Bell, Echostar, ATN International,
Sprint, ViaSat, Fortinet, GTT Communications and Dragonwave. This
includes two (2) new suits recently filed against GTT
Communications (International License Exchange of America, LLC v.
GTT Communications, Inc. United States District Court of
Delaware, Case No.:
1:16-cv-00796-UNA filed September
9th) and DragonWave, Inc. (International License Exchange of
America, LLC v. DragonWave Inc. et al United States District Court
of Delaware, Case No.:
1:16-cv-00797-UNA, filed September
9th).
The ten (10) patent infringement suits currently on file,
represent more suits on file than at any other time in recent
Company history. The speed at which we were able to achieve this is
testament to the Company's accelerated effort to achieve a
formidable stream of licensing revenues from these valuable
patents. While we are pleased with the number of suits filed, we
anticipate more in the future. In addition, our agreement with
Equitable has reduced our monetization costs, as demonstrated by
first half 2016 reduced expenditures on a YOY basis.
New Board Member
Just over a year ago, we announced the appointment of
Howard E. Goldberg to our Board of
Directors. As a recognized industry leader in intellectual property
and patent monetization, Howard's insight, leadership and strategic
relationships have proven to be a valuable asset to the Company.
Today we are enthused to announce that Eric
Weisblum has joined our Board. Eric is currently CEO and a
Board Member at Point Capital Inc., a business development company
that invests in small U.S. companies. Over the course of his nearly
20 year career, Eric has invested in over 100 public companies and
has structured and traded a wide array of financial instruments. We
fully expect Eric's contributions and guidance in the board room to
have an immediate impact on our long term plans to strategically
monetize our assets.
DatChat Letter of Intent
The secure messaging industry is a multi-billion dollar industry
that is becoming increasingly more relevant every day. From
healthcare to government, education and consumer, every single
vertical is experiencing rapid growth in users and revenue. Earlier
this month we announced a non-binding letter of intent to make a
strategic investment in DatChat, Inc., a leader in the secure
messaging industry. We are excited by the possibility of having a
seat at the table in this explosive industry, which would also
serve to diversify the composition of the net asset value of our
Company.
We appreciate your support
The entire team at Spherix continues to work hard with the
capital that you have entrusted us to build and grow for you as
shareholders. Our combination of world class management and key
strategic partners sets us apart in our industry and sets the stage
for the value creation that we know we are capable of. We thank you
for your investment and support and look forward to continuing our
policy of open and transparent communication with our
stakeholders.
Sincerely,
Anthony Hayes
Shareholder & CEO
About Spherix
Spherix Incorporated was launched in 1967 as a scientific
research company. Spherix is committed to advancing innovation by
active participation in the patent market. Spherix draws on
portfolios of pioneering technology patents to partner with and
support product innovation.
Forward-Looking Statements
Certain statements in this press release constitute
"forward-looking statements" within the meaning of the federal
securities laws. Words such as "may," "might," "will," "should,"
"believe," "expect," "anticipate," "estimate," "continue,"
"predict," "forecast," "project," "plan," "intend" or similar
expressions, or statements regarding intent, belief, or current
expectations, are forward-looking statements. While the Company
believes these forward-looking statements are reasonable, undue
reliance should not be placed on any such forward-looking
statements, which are based on information available to us on the
date of this release. These forward looking statements are based
upon current estimates and assumptions and are subject to various
risks and uncertainties, including without limitation those set
forth in the Company's filings with the Securities and Exchange
Commission (the "SEC"), not limited to Risk Factors relating to its
patent business contained therein. Thus, actual results could be
materially different. The Company expressly disclaims any
obligation to update or alter statements whether as a result of new
information, future events or otherwise, except as required by
law.
Contact:
Investor Relations:
Hayden IR
Brett Mass, Managing Partner
Phone: (646) 536-7331
Email: brett@haydenir.com
www.haydenir.com
Spherix:
Phone: (703) 992-9325
Email: info@spherix.com
www.spherix.com
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SOURCE Spherix Incorporated