Video ringtone developer Vringo Ltd. plans to raise up to $12 million at a company value of $64 million in an IPO on the American Stock Exchange (AMEX). The company filed a draft prospectus with the US Securities and Exchange Commission (SEC) on Friday in which it disclosed financial results for the first quarter of 2010.
Vringo, founded in 2006, has developed a platform for creating video ringtones for mobile devices. The company has raised $16.6 million since it was founded.
Vringo posted a net loss of $2 million on $30,000 revenue for the first quarter. The company had no revenue in the corresponding quarter of 2009 and just $20,000 revenue in 2009 as a whole.
Vringo's accumulated losses are $22.1 million, and its capital deficit in its balance sheet statement was $18.3 million at the end of March. The company has $1.4 million in liquid assets and a $3 million bridge loan, which is due to be repaid at the end of June. In the prospectus, the company said that without additional financing, it can survive through the end of June, and if the IPO is a success, it can survive for an additional 18 months.
At the moment, a successful IPO does not seem likely.
Vringo plans to offer 2.4 million units at $4.50-5.50 per unit. Each unit comprises one ordinary share and two warrants convertible to two shares. Maxim Group LLC is the lead underwriter, and Ladenburg Thalman & Co. and Chardan Capital Markets are the secondary underwriters.
Published by Globes [online], Israel business news - www.globes-online.com - on June 6, 2010
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