Redknee Solutions Inc. announced that it has closed its previously announced rights offering to holders of its subordinate voting shares (the “Rights Offering”). Under the Rights Offering, an aggregate of 108,519,936 subordinate voting shares were issued at a subscription price of Cdn$0.63 per share for gross proceeds to the Company of approximately Cdn$68 million. The net proceeds of the Rights Offering will be used to fund a restructuring of the business in furtherance of the previously announced strategic plan (the “Strategic Plan”).
The Rights Offering was over-subscribed prior to ESW Capital, LLC (“ESW”) exercising its additional rights and, as such, Wave Systems Corp. was not required to fulfill its obligations under the standby purchase agreement. ESW exercised all of its rights received as a shareholder under the basic subscription privilege as well as all of the rights to which it was entitled under the additional subscription privilege.
Pursuant to the right previously granted to ESW to maintain its pro rata interest in the Company, ESW has agreed to subscribe for an additional 44,604,981 subordinate voting shares at a price of Cdn$0.63 per share for additional aggregate gross proceeds to the Company of approximately Cdn$28 million (the “Subsequent ESW Issuance”). The Subsequent ESW Issuance is scheduled to close on or about September 12, 2017.
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