Vringo, Inc. (NYSE MKT: VRNG) today announced that it has entered into subscription agreements for the sale of 10,344,998 shares of its common stock in a registered direct offering at a price of $4.35 per share, for gross proceeds of approximately $45 million.
The shares were offered directly to five existing institutional investors without a placement agent or underwriter.
"We are entering court mandated settlement discussions with Google on Tuesday, and trial is scheduled to begin the following week, on October 16th. Upon closing the financing, the company will have over $55 million of cash, and Vringo will be in a position of strength. We are pleased with the confidence our investors have shown in our business plan and growth strategy," said Andrew Perlman, Chief Executive Officer of Vringo.
The sale and issuance of the shares is expected to close on or about October 9, 2012, pending NYSE MKT approval.Additional Information The sale and issuance of the shares is being made pursuant to a prospectus supplement dated August 9, 2012 and an accompanying prospectus dated August 2, 2012, pursuant to Vringo's effective "shelf" registration statement on Form S-3 (File No. 333-182823), which was filed with the Securities and Exchange Commission on July 24, 2012 and was declared effective on August 2, 2012. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of Vringo, Inc. nor shall there be any sale of securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. About Vringo, Inc. Vringo, Inc. is engaged in the innovation, development and monetization of mobile technologies and intellectual property. Vringo's intellectual property portfolio consists of eleven patents, eight of which were acquired from Lycos, Inc., as well as over twenty patent applications. Vringo operates a global platform for the distribution of mobile social applications and services including Facetones® and Video Ringtones which transforms the basic act of making and receiving mobile phone calls into a highly visual, social experience. For more information, visit: www.vringoIP.com.