NEW YORK, Aug. 15, 2018 /PRNewswire/ -- Spherix
Incorporated (Nasdaq: SPEX) a technology development company
committed to the fostering of innovation and monetization of
intellectual property, today announced it has terminated its merger
agreement with DatChat. After strategic meetings with DatChat, both
organziations believe there is a more effective strategy that will
have the best opportunity for long-term growth.
The Spherix Board of Directors determined that a strategic
equity investment in DatChat will provide a better strategy for
shareholders and allow Spherix to benefit from DatChat's platform
and projected growth. This direction should also provide a larger
potential upside without the integration risk inherent in a merger
between the two entities.
Spherix will make an investment of $1,000,000.00 in DatChat at a valuation of $28MM.
The investment will consist of $500,000 cash and the assumption by Spherix of
certain DatChat employee salaries for a period of one year. Several
other customary provisions along with a bilateral mutual release
from the proposed merger have also been agreed to. More information
can be found in the Company's 10Q that was filed with the SEC on
August 14, 2018.
Mr. Anthony Hayes, CEO of Spherix
stated, "We believe the timing of this investment is perfect
amidst the backdrop of a rapidly-growing Cybersecurity sector and
the ever-increasing threats to consumers' privacy and confidential
information. We are enthusiastic with the prospects for DatChat's
scaling business, and look forward to supporting DatChat's ongoing
development."
About Spherix
Spherix is committed to advancing innovation by active
participation in all areas of the patent market. Spherix draws on
portfolios of pioneering technology patents to partner with and
support product innovation. Spherix has acquired over 100 patents
from Rockstar Consortium Inc., and several hundred patents issued
to Harris Corporation, covering a variety of methods and components
involved in switching, routing, networking, optical and
telecommunication sectors.
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 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 Maas, Managing
Partner
|
|
Phone: (646)
536-7331
|
|
Email:
brett@haydenir.com
|
|
www.haydenir.com
|
|
|
Spherix:
|
Phone:
212-745-1373
|
|
Email:
investorrelations@spherix.com
|
|
www.spherix.com
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/spherix-announces-strategic-equity-investment-in-datchat-in-lieu-of-full-company-merger-300697210.html
SOURCE Spherix Incorporated