$VRNG,...Vringo raising $12.5M through convertible debt/warrant sale
Vringo has "entered into an agreement with a long-standing institutional investor to issue $12.5 million of senior secured convertible notes." (PR) (8-K filing)
The notes mature 21 months from issuance, carry an interest rate of 8%, and have a conversion price of $1.00 (39% above current levels). Vringo can repay the notes "in either cash or, subject to certain conditions, shares of the company`s common stock at a discount to the then-current market price."
Along with the notes, the investor is receiving warrants to purchase 5.375M shares at $1 apiece; they'll be "exercisable six months and one day from the date of issuance and will have a term of five years from the date they first become exercisable."
Vringo only says it will use the proceeds to "enhance its monetization efforts around the world for existing and upcoming monetization efforts." The company had $16M in cash at the end of 2014, and less than $200K in debt. 2014 free cash flow was -$28.6M
invest at your own risk, based on your own due diligence, at your own risk tolerance
