Vringo To Sell $31.2M Worth Of Stock To Buy Over 500 Nokia Patents
Vringo is a mobile technology company that is public. Today Vringo said that they will raise $31.2 million by selling 9.6 million shares of common stock in a registered direct offering at a price of $3.25 per share. They will then used the proceeds to buy intellectual property from Nokia. Below are some details from the press release.
“Nokia agreed to sell Vringo a portfolio consisting of over 500 patents and patent applications worldwide, including 109 issued United States patents. Vringo agreed to compensate Nokia with a cash payment and certain ongoing rights in revenues generated from the patent portfolio.
The portfolio encompasses a broad range of technologies relating to cellular infrastructure, including communication management, data and signal transmission, mobility management, radio resources management and services.
Thirty one of the 124 patent families acquired have been declared essential by Nokia to wireless communications standards. Standards represented in the portfolio are commonly known as 2G, 2.5G, 3G and 4G and related technologies and include GSM, WCDMA, T63, T64, DECT, IETF, LTE, SAE, and OMA.”
Nokia will have a non-exclusive and fully paid-up license to the portfolio for the purpose of supplying Nokia’s products. The $22 million will be paid to Nokia on or before September 14, 2012.
Vringo plays to use the raised capital to pay outstanding debt and for general corporate purposes. Vringo sells video ringtones and mobile applications. Vringo merged with Innovate/Protect to grow their intellectual property portfolio. Innovate/Protect was the owner of patent assets that were acquired from Lycos.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry