WiMAX solutions developer Runcom Technologies Ltd. has invested in Ogo developer IXI Mobile Inc. (Bulletin Board:IXMO) and acquired the stakes of Gemini Israel Funds and Southpoint Master Fund for $15.2 million. When the transactions are completed, Runcom will own 90% of IXI.
Runcom will invest $1 million in IXI via a private placement. IXI will issue 8.7 million shares to Runcom at $0.115 per share. Runcom will also receive a 12-month option for warrants exercisable for up to 116,000 IXI shares at a strike price of $34.50 per share for a total of $4 million. IXI's share rose 150% to $0.05 on Friday, giving a market cap of $1.2 million.
In a separate deal, IXI reached agreements with Southpoint, LP and Gemini to allow them to convert the outstanding loans to the company to shares. Both Southpoint and Gemini converted $15.2 million in loans to IXI shares, which Runcom then acquired.
IXI's Ogo is intended as a kind of mass market BlackBerry, with telephone, e-mail, Internet surfing, and instant message applications.
Published by Globes [online], Israel business news - www.globes-online.com - on December 28, 2008
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