NEWARK, Calif., Sept. 1, 2020 /PRNewswire/ -- Socket Mobile, Inc.
(NASDAQ: SCKT), a leading innovator of data capture and delivery
solutions for enhanced productivity, today announced completion of
a secured subordinated convertible note financing of $1,530,000. The proceeds will be used to increase
the Company's working capital balances.
The notes have a three-year term and will mature on August 30, 2023. The interest rate on the notes
is 10%, payable quarterly in cash. The holder of each note may
require the Company to repay the principal amount of the note plus
accrued interest at any time after August
31, 2021. The notes are secured by the assets of the Company
and are subordinated to the Company's debts with Western Alliance
Bank, its senior lender. The principal amount of each note is
convertible at any time, at the option of the holder, into shares
of the Company's common stock at a conversion price of $1.46 per share, the closing price of the common
stock on the Nasdaq Capital Market on August
28, 2020, and the most recent closing price as of the
closing of the financing.
Investors in the financing include Charlie Bass, Chairman of the Company's Board of
Directors, Kevin Mills, the
Company's CEO and a director, and Lynn
Zhao, the Company's CFO and a director, and other members of
the Company's management team. Additional details of the financing
are set forth in a Form 8-K to be filed by the Company with the
SEC.
About Socket Mobile, Inc.
Socket Mobile is a leading
provider of data capture and delivery solutions for enhanced
productivity in workforce mobilization. Socket Mobile's revenue is
primarily driven by the deployment of third-party barcode enabled
mobile applications that integrate Socket Mobile's cordless barcode
scanners and contactless reader/writers. Mobile Applications
servicing the specialty retailer, field service, transportation,
and manufacturing markets are the primary revenue drivers. Socket
Mobile has a network of thousands of developers who use its
software developer tools to add sophisticated data capture to their
mobile applications. Socket Mobile is headquartered in Newark, Calif. and can be reached at
+1-510-933-3000 or www.socketmobile.com. Follow Socket Mobile
on Facebook, Twitter @socketmobile and on our sockettalk
blog.
Forward-Looking Statements
This press release
contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Such
forward-looking statements include, but are not limited to,
statements regarding new mobile computer and data collection
products, including details on the timing, distribution and market
acceptance of the products, and statements predicting trends, sales
and market conditions and opportunities in the markets in which we
sell our products. Such statements involve risks and uncertainties,
and actual results could differ materially from the results
anticipated in such forward-looking statements as a result of a
number of factors, including, but not limited to, the risk that our
new products may be delayed or not rollout as predicted, if ever,
due to technological, market, or financial factors, including the
availability of necessary working capital, the risk that market
acceptance and sales opportunities may not happen as anticipated,
the risk that our application partners and current distribution
channels may choose not to distribute the new products or may not
be successful in doing so, the risk that acceptance of our new
products in vertical application markets may not happen as
anticipated, and other risks described in our most recent Form 10-K
and 10-Q reports filed with the Securities and Exchange
Commission.
Socket Mobile Investor Contact:
Lynn Zhao
Chief Financial
Officer
510-933-3016
lynn@socketmobile.com
Socket is a registered trademark of Socket Mobile. All
other trademarks and trade names contained herein may be those of
their respective owners.
© 2020, Socket Mobile, Inc. All rights reserved.
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SOURCE Socket Mobile, Inc.