GraphOn Corp. Announces Completion of $7.1 Million Equity Financing
September 02 2011 - 5:00AM
Business Wire
GraphOn Corporation (OTCBB:GOJO), a leading worldwide developer
of cloud application delivery and Web-enabling solutions, today
announced the completion of $7.1 million equity financing in a
private placement to a group of institutional investors.
GraphOn sold 35.5 million shares of its common stock at $0.20
per share for gross proceeds to the company of $7.1 million.
GraphOn also issued five year warrants to the investors for an
additional 17.75 million shares of common stock with an exercise
price of $0.26 per share, a 30% premium to the sale price of the
common stock in the transaction. The net proceeds of the offering,
after deducting placement agent fees and estimated financing
expenses, are expected to be approximately $6.25 million. MDB
Capital Group, LLC, an intellectual property (IP) investment bank,
which acted as sole placement agent for the offering, received five
year warrants to acquire 3.55 million shares and 1.775 million
shares at exercise prices of $0.20 and $0.26 respectively.
“GraphOn will use the proceeds of this strategic equity
financing to further develop and expand the market reach of its
GO-Global technology and to build upon its foundational
intellectual property assets,” said Robert Dilworth, chairman of
the board and CEO of GraphOn Corporation. “We are pleased that MDB
Capital Group recognized the value of our intellectual property and
the innovation behind our proprietary cloud application delivery
and Web-enabling technology.”
The securities sold by GraphOn in the private placement, and the
shares of common stock issuable upon exercise of the warrants, have
not been registered under the Securities Act of 1933, as amended,
and may not be offered or sold absent such registration or an
applicable exemption from the registration requirements. In
connection with the offering, GraphOn entered into a registration
rights agreement with investors that requires the company to
register the securities issued in the financing.
About GraphOn Corporation
Founded in 1996, GraphOn Corporation is a publicly traded
company headquartered in Santa Cruz, California. The company is an
innovator of cost-effective, advanced solutions that will enable
customers to access any application, from any device, anywhere.
GraphOn’s high-performance software solutions provide fast
application access, cross-platform connectivity, and a centralized
architecture that delivers a dramatically lower cost of ownership.
The company’s GO-Global solutions can be used with Microsoft (MSFT)
Windows, IBM AIX, Oracle (ORCL) Solaris, Hewlett-Packard (HPQ)
HP-UX, Linux, Apple (AAPL) OS X and iOS, and other operating
systems. For more information, call 1.800.GRAPHON in the USA,
+44.1344.206549 in Europe, or visit www.graphon.com or
www.facebook.com/graphon.
About MDB Capital Group
MDB Capital Group, LLC is an institutional research and
investment banking firm focusing exclusively on companies
possessing market changing, disruptive intellectual property. For
more information on MDB Capital Group, visit www.mdb.com.
This press release contains statements that are forward looking
as that term is defined by the United States Private Securities
Litigation Reform Act of 1995. These statements are based on
current expectations that are subject to risks and uncertainties.
Actual results will differ due to factors such as shifts in
customer demand, product shipment schedules, product mix,
competitive products and pricing, technological shifts and other
variables. Readers are referred to GraphOn's most recent periodic
and other reports filed with the Securities and Exchange
Commission.
GraphOn and GO-Global are registered trademarks of GraphOn
Corporation. All other trademarks belong to their respective
owners.
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