Vicon Industries Announces Important Dates and Terms for Rights Offering
September 19 2017 - 4:29PM
Business Wire
Vicon Industries, Inc. (NYSE American: VII), a global producer
of video security solutions, today announced the terms of its
previously reported rights offering.
Under the terms of the rights offering, the Company is
distributing one non-transferable subscription right for each share
of the Company's common stock then owned, at no charge, to the
holders of its common stock as of 5:00 p.m. New York City time on
September 22, 2017. Each subscription right will entitle the holder
to purchase one share of common stock at the subscription price of
$0.40 per share. The rights offering also includes an
over-subscription privilege, which entitles a shareholder who
exercises all of its basic subscription rights in full the right to
purchase additional shares of common stock that remain unsubscribed
at the expiration of the rights offering, subject to the
availability and pro rata allocation of shares among persons
exercising this over-subscription privilege. A total of 9,348,388
new shares of common stock will be available for issuance pursuant
to the rights offering, which would generate up to $3.7 million of
gross proceeds if fully exercised. The Company expects to utilize
the estimated net proceeds of the rights offering to repay
indebtedness under its revolving credit facility.
Mailing of offering materials to shareholders is expected to
begin on October 3, 2017, and the subscription period will expire
at 5:00 p.m., New York City time, on October 19, 2019, unless
extended.
In addition, as previously reported, NIL Funding Corporation,
the Company’s secured lender, has agreed to purchase up to $3
million of the Company’s common stock following the closing of the
rights offering, subject to certain terms and conditions set forth
in an Investment Agreement between NIL Funding and the Company.
This announcement shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any offer or sale of these securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful. A registration
statement on Form S-1 (Reg. No. 333-219767) relating to the common
stock to be sold in the rights offering has been declared effective
by the Securities and Exchange Commission. The offering will be
made only by means of a prospectus which is a part of the
registration statement. A copy of the prospectus may be obtained
from the information agent, Broadridge Corporate Issuer Solutions,
Inc. at (855) 793-5068.
About Vicon
Vicon Industries, Inc. (NYSE American: VII) is a global producer
of video management systems and system components for use in
security, surveillance, safety and communication applications by a
broad range of end users. Vicon’s product line consists of various
elements of a video system, including video management software,
recorders and storage devices and capture devices (cameras).
Headquartered in Hauppauge, New York, the Company also has offices
in Yavne, Israel; the United Kingdom and San Juan Capistrano,
California. More information about Vicon, its products and services
is available at www.vicon-security.com.
Special Note Regarding Forward-looking Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements relating to our proposed fundraising
activities. These forward-looking statements are based on
management's current expectations and are subject to certain risks
and uncertainties that could cause actual results to differ
materially from those set forth in or implied by such forward
looking statements. All information in this press release is as of
the date of the release and we undertake no duty to update this
information unless required by law.
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version on businesswire.com: http://www.businesswire.com/news/home/20170919006629/en/
Vicon Investor RelationsCindy Schneider,
631-650-6201IR@vicon-security.com
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