Vuzix,
a supplier of video eyewear and smart glasses products designed for the
consumer, commercial and entertainment markets, today announced the exercise of
a majority of the company’s outstanding warrants issued in conjunction to its
August 2013 public offering.
The
company reports that holders of its common stock purchase warrants have elected
to exercise into common shares – this includes outstanding warrants held by executive
management.
Since
the beginning of 2015, Vuzix has received requests to exercise 4,605,892
warrants associated with its 2013 stock offering which were exercisable into
common stock at $2.25 per share. To-date, 469,500 of these have been exercised
for cash for net proceeds to the company totaling approximately $1.0 million.
The 4,158,092 balance was exercised on a cashless basis resulting in the
issuance of 3,534,972 common shares. Of these cashless exercises, a total of
3,822,442 were exercised on February 25, 2015. The company did not offer the
holders of warrants any inducement to exercise. There are currently now only
125,100 warrants outstanding from the August 2013 offering and the total
warrants outstanding are now only 597,643.
Vuzix
also announced that it has received $337,500 in convertible note conversions
during this time period. Total convertible notes outstanding today, excluding
accrued interest is now $2.0 million, which is convertible into 905,556 shares.
As
of February 26, 2015, following the exercise of these warrants and note
conversions, Vuzix now has 15,800,489 commons shares. The company’s outstanding
preferred shares are convertible into an additional 4,962,000 common shares.
“The
exercise of warrants, receipt of cash and reduction of debt all help to further
bolster Vuzix’ balance sheet and improve our capital structure,” stated Vuzix
founder and CEO Paul Travers. “We are pleased to see this vote of confidence
from our investors following our recent investment from Intel and the company’s
listing onto NASDAQ. We strongly believe in the value of share ownership in the
company, which is why CFO, Grant Russell and I have also decided to exercise
all our warrants into common shares with our other warrant holders. This is yet
another step in strengthening our capital structure and bolstering the balance
sheet of the company.”
Improvements
in Vuzix’ balance sheet will be reflected in the company’s Form 10-Q filing for
the period ending March 31, 2015.
For
more information, visit www.vuzix.com
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