Spherix Inc. (NASDAQ: SPEX) shares more than doubled right out of the gate in Tuesday’s trading session, after the company said it entered into a new licensing agreement with RPX Corp. (NASDAQ: RPXC). Note that this is actually the second licensing agreement between these two companies.
Under the new agreement, Spherix will receive a cash payment and return of all of the Series H preferred stock of Spherix presently held by RPX, representing the entire class of Series H shares outstanding. However, the cash amount was not mentioned in the release. In exchange, Spherix granted RPX a portfolio license, which RPX can then use to grant sublicenses to its clients.
Spherix has a market cap of just over $10 million currently. Obviously it would not take much to move the needle for this company, whether to the upside or the downside.
For some background on Spherix: The company 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. It has acquired over 100 patents from Rockstar Consortium and several hundred patents issued to Harris Corporation, covering a variety of methods and components involved in switching, routing, networking, optical and telephone technologies, as well as in the wireless communications and telecommunication sectors.
Spherix’s litigations against L3 Communications, TW Telecommunications, Fairpoint Communications and Uniden will continue.
Anthony Hayes, CEO of Spherix, commented:
We are pleased to have reached this second license agreement with RPX. We continue to seek long-term, mutually beneficial license agreements that represent a positive outcome for our shareholders.
Shares of Spherix were up about 87% at $3.58 midday, with a consensus analyst price target of $19.00 and a 52-week trading range of $1.52 to $13.11.
RPX shares traded at $9.16. The consensus price target is $13.00, and the 52-week range is $8.85 to $17.31.
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