Blue Calypso Inc. (OTCBB: BCYP), an innovator in digital social advertising, mobile content syndication, and analytics, has dramatically improved its financial condition ahead of a key Markman hearing set for August 27, 2013 by closing on a private placement which resulted in gross proceeds to the Company of $2.4 million. The company settled its outstanding In addition, the Company recently reached an agreement with the holder of its senior secured convertible debentures without any dilution to existing stockholders and raised $2.4 millionwhereby the holder agreed to immediately release its security interest in all of the Company’s assets, including its intellectual property.
With the patent litigation success seen by companies like Vringo Inc. (AMEX: VRNG) and VirnetX (AMEX: VHC), investors have been closely watching the Blue Calypso story. The removal of key concerns over its patent rights sets the stage for significant potential value creation moving towards a Markman hearing, while the $2.4 million puts it on strong financial footing.
Here’s a copy of the full press release announcing the successful capital raise:
Blue Calypso, Inc. (BCYP) - an innovator in digital social advertising, mobile content syndication, and analytics - announced today that it has completed a private placement resulting in gross proceeds to the Company of $2.4 million.
The Company issued a 10% Convertible Debenture in the principal amount of $2.4 million and 1.2 million shares of common stock to the investor. The Debenture bears interest at a rate of 10% per annum, is due two years from the issuance date and is convertible into shares of the Company’s common stock at a conversion price of $0.25 per share.
“We are pleased that this new investment and our recent agreement to settle our outstanding senior secured convertible debentures without any dilution to our stockholders has dramatically improved our financial position,” commented Bill Ogle, Blue Calypso’s chairman and CEO. “The purchase of these debentures at a premium to market is yet another vote of confidence in Blue Calypso.”
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About Blue Calypso, Inc. Blue Calypso is an innovator in digital word-of-mouth marketing and advertising. With Blue Calypso’s patented platform, brands can harness the power of friend-to-friend referrals by empowering their advocates to share brand content with their social media communities and rewarding them for sharing their influence. Through robust, real-time analytics, brands can achieve a measurable ROI against their social media investment, acquire high-value customers and increase sales. For additional information please visit: http://bluecalypso.com/Pages/Common/Default.aspx
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