Vringo Plans Expansion and Escalation of Global Litigation and Licensing Programs
NEW YORK - June 20, 2014 - Vringo, Inc. (NASDAQ:VRNG) today announced that it plans to expand and escalate its global litigation and licensing programs following receipt of $10 million in cash from the exercise of outstanding warrants by three institutional investors.
The investors exercised 5,697,227 warrants, which are part of a series of warrants that expire in three years, on July 19, 2017, and have an exercise price of $1.76 (the "July 2017 Warrant Series"). The exercised warrants represent 58% of the July 2017 Warrant Series. Vringo directors and officers hold 70% of the remaining July 2017 Warrant Series.
Vringo and the investors who exercised the warrants entered into an agreement pursuant to which Vringo issued 5,412,366 new warrants that expire in one year, on June 21, 2015, and have an exercise price of $5.06, 44% above yesterday's closing price of Vringo common stock. The new warrants do not contain cashless exercise or anti-dilution features, and Vringo is under no obligation to register the shares of common stock underlying them.
"Vringo plans to expand and escalate its global litigation and licensing programs in the near term in an effort to realize revenue from companies that are selling or attempting to sell products without paying Vringo appropriate royalties for use of its technology," said Andrew D. Perlman, Chief Executive Officer.
"Vringo has recently posted bonds to secure injunctions against ZTE and its local subsidiaries in Germany and Brazil. With today's cash infusion, Vringo will have additional cash to further escalate and expand its mobile telecommunications licensing programs against ZTE and other companies. Vringo will also continue its pursuit to defend and collect its judgments against Google," Mr. Perlman continued.
About Vringo, Inc.
Vringo, Inc. is engaged in the development and monetization of intellectual property worldwide. The Company's intellectual property portfolio consists of over 600 patents and patent applications covering telecom infrastructure, internet search and mobile technologies. The Company's patents and patent applications have been developed internally and acquired from third parties. For more information, visit: www.vringo.com.
This press release includes forward-looking statements, which may be identified by words such as "believes," "expects," "anticipates," "estimates," "projects," "intends," "should," "seeks," "future," "continue," or the negative of such terms, or other comparable terminology. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein. Factors that could cause actual results to differ materially include, but are not limited to: our inability to license and monetize our patents, including the outcome of the litigation against online search firms and other companies; our inability to monetize and recoup our investment with respect to patent assets that we acquire; our inability to develop and introduce new products and/or develop new intellectual property; new legislation, regulations or court rulings related to enforcing patents, that could harm our business and operating results; unexpected trends in the mobile phone and telecom infrastructure industries; our inability to raise additional capital to fund our combined operations and business plan; our inability to maintain the listing of our securities on a major securities exchange; the potential lack of market acceptance of our products; potential competition from other providers and products; our inability to retain key members of our management team; the future success of Infomedia and our ability to receive value from its stock; and other risks and uncertainties and other factors discussed from time to time in our filings with the Securities and Exchange Commission ("SEC"), including our annual report on Form 10-K filed with the SEC on March 10, 2014. Vringo expressly disclaims any obligation to publicly update any forward-looking statements contained herein, whether as a result of new information, future events or otherwise, except as required by law.
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Source: Vringo, Inc. via Globenewswire