Inventergy Global Inc. (INVT), the patent licensing company run by CEO Joseph Beyers, said it raised $2.5 million in a private placement of convertible preferred shares and warrants to new and existing investors.
Campbell, California-based Inventergy said the placement was arranged by Chardan Capital Markets.
Inventergy said it is issuing Series C convertible preferred stock that has no required dividends and has a conversion price of $1.50 per share, subject to adjustment. The preferred stock is initially convertible into approximately 1,666,667 shares of common stock, subject to certain adjustments, until it is converted by the investors or redeemed.
The company has the option to redeem the preferred stock at premiums ranging from 26% to 50% depending on the redemption date.
In addition, the company will issue to the investors warrants to purchase an aggregate of 1,416,667 shares of common stock. The warrants are exercisable for a term of five years, beginning six months after the closing of the transaction at an exercise price of $1.79 per share.
The conversion of the convertible preferred stock is limited to 19.99% of the currently outstanding common stock unless and until the company receives a stockholder vote approving the conversion. The transaction is expected to close on or about January 26.
“We believe this investment helps propel our corporate trajectory towards what we view as a strong pipeline of potential revenue,” Beyers said in a statement. “It provides us with resources to execute on this pipeline and to enhance shareholder value.”
Shares of Inventergy fell 1 cent to $1.77 in early trading. They’ve traded between 71 cents and $9.40 over the past year.
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