Transaction to Add Over $1.5M in Cash and Eliminate All Company Debt
REDWOOD SHORES, Calif., Jan. 13, 2014 (GLOBE NEWSWIRE) -- Communication Intelligence Corporation ("CIC") (OTCQB:CICI), a leading supplier of electronic signature solutions, today announced that it had closed a new round of funding with a number of existing and new investors to provide working capital and to convert all outstanding indebtedness to equity.
In the transaction, which closed on December 31, 2013, investors subscribed to approximately $2.7 million in units of CIC's most senior class of equity, the Series D Preferred Stock, having a blended conversion rate of approximately $0.0275 per share. Of this amount, $1,544,000 relates to signed subscription agreements for cash, of which $939,000 was contributed at the closing and the remaining $605,000 is expected to be contributed at a second closing in January, and approximately $1,150,000 relates to the conversion of principal of certain unsecured promissory notes. Investors were also issued warrants to purchase shares of Common Stock at an exercise price of $0.0275 per share.
"With the recently announced release of our powerful and feature rich new product, CIC has resumed its earlier growth trend," said Philip Sassower, chairman and chief executive officer for CIC. "We remain highly confident in CIC's ability to deliver revenue growth both from its direct sales efforts and from its established and growing number of integration partners. This new funding round is evidence that Phoenix and its investor group continue to support CIC in its efforts to become self-sustaining. This is an exciting time to be involved with CIC and in the e-signature space in general."
Additional information on this funding round is available in CIC's Current Report on Form 8-K that was filed with Securities and Exchange Commission on January 7, 2014, and is available at www.sec.gov.
CIC is a leading supplier of electronic signature products and the recognized leader in biometric signature verification. CIC enables companies to achieve truly paperless workflow in their electronic business processes by providing multiple signature technologies across virtually all applications. CIC's solutions are available both in SaaS and on-premise delivery models and afford "straight-through-processing," which can increase customer revenue by enhancing user experience and can also reduce costs through paperless and virtually error-free electronic transactions that can be completed significantly quicker than paper-based procedures. CIC is headquartered in Silicon Valley. For more information, please visit our website at http://www.cic.com. CIC's logo, SignatureOne® Ceremony® Server and iSign® are registered trademarks of CIC.
Forward Looking Statements
Certain statements contained in this press release, including without limitation, statements containing the words "believes", "anticipates", "hopes", "intends", "expects", and other words of similar import, constitute "forward looking" statements within the meaning of the Private Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual events to differ materially from expectations. Such factors include the following (1) technological, engineering, quality control or other circumstances which could delay the sale or shipment of products containing the Company's technology; (2) economic, business, market and competitive conditions in the software industry and technological innovations which could affect customer purchases of the Company's solutions; (3) the Company's inability to protect its trade secrets or other proprietary rights, operate without infringing upon the proprietary rights of others or prevent others from infringing on the proprietary rights of the Company; and (4) general economic and business conditions and the availability of sufficient financing.
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Source: Communication Intelligence Corporation