CopyTele Announces $3.5 Million Financing From Institutional Investor
MELVILLE, NY, Nov 12, 2013 (Marketwired via COMTEX) --
CopyTele, Inc. ("CTI") (OTCQB: COPY), a company specializing in
patent monetization and patent assertion, today announced that it has
completed a private placement of a $3,500,000, 6% convertible
debenture to a single institutional investor. The debenture pays
interest annually and is convertible into shares of CTI's common
stock at 18.92 cents per share, which represents the volume weighted
average closing price of the CTI common stock in the 30 days prior to
the financing. The financing also includes the issuance of a three
year warrant to purchase 9,249,472 common shares, at an exercise
price of 37.84 cents per share. The $3,500,000 of gross proceeds from
the financing will be used for general working capital purposes.
Robert Berman, CTI's President and CEO stated, "This private
placement insures that we will have the necessary capital to launch
additional patent assertion campaigns and continue to grow the
company at a rapid pace. The added capital will also strengthen our
negotiating positions with potential infringers, and patent
acquisition candidates. We continue to accomplish each goal that we
outlined when we joined the company as new management, and are
thrilled with the progress that we have made over the past year."
The CTI securities being sold have not been registered under the
Securities Act of 1933, or any state securities laws and may not be
offered or sold in the United States absent registration or an
exemption from the registration requirements of the Securities Act
and applicable state laws. Additional information with respect to
this private placement will be available in the Company's Form S-1 to
be filed with the Securities and Exchange Commission.
Since implementing its new patent assertion business model in January
of 2013, CTI now has entered into 4 revenue producing licenses from 2
of its patent portfolios, and 37 active lawsuits across 5 of its
patented technology areas including E-Paper Electrophoretic Displays,
Nano Field Emission Displays, Key Based Web Conferencing Encryption,
Loyalty Conversion Systems and J-Channel Window Frame Construction.
About CopyTele, Inc.
CTI develops and acquires patented technologies for the purposes of
patent monetization and patent assertion. The company currently has 7
patent portfolios in the areas of Key Based Web Conferencing
Encryption, Encrypted Cellular Communications, E-PaperÂ®
Electrophoretic Display, Nano Field Emission Display ("nFED"), Micro
Electro Mechanical Systems Display ("MEMS"), Loyalty Conversion
Systems, and J-Channel Window Frame Construction. Additional
information is available at www.CTIpatents.com.
Forward-Looking Statements: Statements that are not historical fact
may be considered forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are not statements of historical facts, but rather reflect
CopyTele's current expectations concerning future events and results.
We generally use the words "believes," "expects," "intends," "plans,"
"anticipates," "likely," "will" and similar expressions to identify
forward-looking statements. Such forward-looking statements,
including those concerning our expectations, involve risks,
uncertainties and other factors, some of which are beyond our
control, which may cause our actual results, performance or
achievements, or industry results, to be materially different from
any future results, performance, or achievements expressed or implied
by such forward-looking statements. These risks, uncertainties and
factors include, but are not limited to, those factors set forth in
"Item 1A - Risk Factors" and other sections of our Annual Report on
Form 10-K for the fiscal year ended October 31, 2012 as well as in
our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law. You are
cautioned not to unduly rely on such forward-looking statements when
evaluating the information presented in this press release.
SOURCE: CopyTele, Inc.
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