IRVINE, Calif., Dec. 21, 2012 (GLOBE NEWSWIRE) -- DecisionPoint Systems, Inc. (OTCBB:DPSI), a leading provider and integrator of Enterprise Mobility, Wireless Applications and RFID solutions, announced that it had raised $6.336 million in gross proceeds from institutional and accredited investors through a private placement of 633,600 shares of 8 percent Series D convertible preferred stock, with a stated value of $10.00 per share. Each share of preferred stock may be converted into 10 common shares at any time at the option of the holder, for a conversion price of $1.00 per common share.
DecisionPoint used $4.5 million of the proceeds to redeem all of its 20% Series C Convertible Preferred shares with the balance for general corporate purposes.
The transaction will result in dividend cash savings of greater than $300,000 annually.Taglich Brothers, Inc. served as the exclusive placement agent. The firm's principals, Michael Taglich and Robert Taglich each personally invested in the transaction as did members of DecisionPoint's management team, including Nicholas Toms and other directors and officers. For more details, please see the current report on Form 8-K to be filed by DecisionPoint Systems on or about December 27, 2012. The law firm of Sichenzia Ross Friedman Ference LLP represented DecisionPoint in the transaction. "This financing will reduce our dividend expense significantly while bolstering our balance sheet and broadening our shareholder base to meet minimum standards for uplisting our common stock on to a nationally recognized exchange, one of our strategic goals," said Nicholas Toms, Chief Executive Officer of DecisionPoint. Michael Taglich, Co-Founder, President and Chairman of Taglich Brothers, commented, "We are excited about our investment in DecisionPoint. We expect the balance of the financing, which will total approximately $7.35 million, will close shortly." The securities sold by DecisionPoint in the private placement were not registered under the Securities Act of 1933, as amended (the "Securities Act"), and were sold in reliance upon exemptions from the registration requirements of the Securities Act pursuant to Regulation D promulgated under the Securities Act. Therefore, such securities may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and any applicable state securities laws. This press release does not constitute an offer to sell any securities or a solicitation of an offer to purchase any securities