WiMAX co Runcom acquires nearly all of IXI

Runcom Technologies will buy stakes of VC firms, and invest directly as well.

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

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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