Vringo (News - Alert), a provider of software platforms for mobile social and video applications, announced that it has raised $850,000 of new funds and converted $2.5 Million of convertible notes previously issued in a bridge financing led by venture capital firms Benchmark Capital and DAG Ventures in July 2011. The company has supposedly completed $3.35 million round of financing.
The new funds were issued at $1.04 per share and it is stated to be at a 20 percent discount of the company’s common stock closing price on Nov 30, 2011 and the $2.5 million notes issued in bridge financing are said to have been systematically altered into common stock at 10 percent discount to the issuance price for the new funds.
Vringo asserted that the new funds will be utilized for sales and marketing expansion, working capital and general corporate purposes. Benchmark Capital and DAG Ventures are the venture capital firms that first invested in companies like eBay (EBAY), Twitter, Zipcar (ZIP), AdMob (News - Alert) (acquired by Google), Plaxo (acquired by Comcast), Chegg, Segway, and Yelp.
The company added that it is thrilled to announce the closing of this financing, including the conversion of the bridge notes previously issued in the financing led by Benchmark and DAG. It has solidified its cash position and removed all of its debt. The company is hoping to continue to build its future business pipeline. It believes its innovative social mobile applications, early lead in the market and strengthened balance sheet will allow it to make further advancements into the fast-growing mobile social market.
Officials with Vringo commented that the proceeds of this financing will significantly improve their capital structure as well as enable them to maintain their strategic vision of mobile social applications such as Facetones becoming more mainstream. They have reduced their expenses while continuing to expand their revenues. This additional funding will allow them to grow their business and launch additional software platforms with partners around the world.
Nathesh is a contributing editor for TMCnet. To read more of Nathesh's articles, please visit his columnist page.Edited by Rich Steeves