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 Corp. (NYSE: NOK).
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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