Vringo Share Offering Won Over by Pact to Buy 500 Nokia Patents
How many companies see their shares rise on direct offerings of stock? Vringo Inc. (NYSEMKT: VRNG) is trading higher again today, but not on raising capital. The company announced that it has entered into a patent purchase agreement with…
Nokia agreed to sell Vringo a portfolio consisting of over 500 patents and patent applications worldwide. The report shows that some 109 of these patents were issued in the United States and Vringo will pay cash to Nokia and will offer it certain ongoing rights in revenues generated from the patent portfolio. This patent portfolio covers a broad range of technologies (listed as covering 2G, 2.5G, 3G and 4G and related technologies, and includes GSM, WCDMA, T63, T64, DECT, IETF, LTE, SAE and OMA).
Vringo has entered into subscription agreements for the sale of 9.6 million shares of its common stock in a registered direct offering at a price of $3.25 per share in an effort to raise some $31.2 million. About 90% of the shares in the offering were placed with three institutional investors and the use of proceeds is to acquire the portfolio of intellectual property from Nokia.
Vringo closed at $3.44 yesterday and shares are up at $3.65 in premarket trading.
JON C. OGG
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
