Blue Calypso Inc. (BCYP), the patent licensing company run by CEO Andrew Levi, said it raised $1.77 million from a private placement of common stock and warrants issued to unnamed accredited investors.
Dallas-based Blue Calypso said the shares were issued between September 23 and September 29, under a securities purchase agreement.
The company issued 417,500 shares of common stock and warrants to purchase an additional 417,500 shares of common stock. That means the shares were issued at a price of $4.25 a share. The 5-year warrants exercise at $4.75 each. They are subject to downward adjustments for stock dividends, stock splits, combinations and reclassifications of the common stock.
Blue Calypso shares fell 31 cents to $5.19 in trading today. They’ve traded between $3.50 and $10 over the past year.
In an emailed statement, Levi declined to identify the investors and said "we hope to never have to raise money again."
The equity raise comes after Blue Calypso shelved a public offering that it hoped would raise $5 million to $10 million.
In addition, the purchase agreement prohibits the company from effecting any public offering of common stock within ninety days of the closing unless the closing price of the company’s common stock is above $15 a share for ten consecutive trading days.
The company said it paid placement agent Merriman Capital cash commissions equal to 8% of the gross proceeds of the offering and also reimbursed the placement agent for its out of pocket expenses.
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