Mobile social and video applications platform Vringo Inc. announced is has secured a $3.35 million round of financing, representing $850,000 of new funds and conversion of $2.5 million of notes previously issued in bridge financing led by Benchmark Capital and DAG Ventures. The company said the funding would go toward expanding its business and therefore growing its revenues.
The issuance price for the new funds was $1.04 per share, a 20 percent discount to the closing price of the company’s common stock on November 30. The previously issued convertible notes were automatically converted into common stock at a 10 percent discount to the issuance price for the new funds.
Jon Medved, chief executive officer of Vringo, said the company now has strengthened its cash position and eliminated its debt. “We believe our innovative social mobile applications, early lead in the market and strengthened balance sheet will allow us to make further advancements into the fast-growing mobile social market,” he said in a statement.
Fringo’s newest product is Facetones, which creates a personal Facebook-based slideshow of the caller’s images that display on the recipient’s device. It also offers: Video ReMix application, which in partnership with music artists and brands, allows users to create their own music video by tapping on a smartphone or tablet; and Fan Loyalty, a platform that lets users interact, vote and communicate with contestants in partner reality TV series, as well as downloading and setting clips from such shows as video ringtones.
IR release – http://tinyurl.com/6nqpow8