Voice Mobility Closes Financing, Acquires Cloud Based UC Service Provider
Voice Mobility International, the Vancouver-based developer and provider of carrier and enterprise messaging solutions is undergoing a planned financial restructuring. As a part of the process, last month, the company launched debentures to secure a fund amounting to $580,000.
Through a recent press release, Voice Mobility just announced the closing of the financing as well as the completion of an acquisition of a UC service provider.
In a press release, Voice Mobility announced that it has acquired all of the assets of Tagline Communications for $425,000. The company also announced the issuance of one million common shares of the acquired company. Also as a part of the financial restructuring process, the acquisition of Tagline is expected to strengthen the company’s financial footing by helping to expand its business.
A large part of the proceeds from the debentures will help Voice Mobility to clear its outstanding debts and raise its working capital.
The debentures are secured, bear interest at 12 percent per annum, and have a term of four months. In connection with the debenture financing, Voice Mobility issued 1.5 million common shares to an arm's length party.
The company reportedly managed to settle $87,500 in outstanding debt through the issuance of 875,000 common shares at a deemed price of $0.10 per common share.
“We are taking a step by step, methodical approach to executing on our stated strategy. With the strengthening of our balance sheet brought by the closing of the AVST transaction in February, 2011, we are now commencing our strategy of acquiring Cloud based unified communications ("UC") service providers. Each acquisition will lead us further along the path to profitability and value for our shareholders,” CEO of VMI Jay Hutton explained in a statement.
Hutton continued, “We are pleased that we were also able to take the opportunity to eliminate some of our debt in this transaction and will continue efforts to improve our financial position and grow our business through acquisition. The Tagline transaction is the first step in this acquisition strategy. We remain committed to the growth strategy that we communicated late last year.”
Last month, Voice Mobility announced the signing of a 10-year license agreement with Applied Voice & Speech Technologies (AVST), a developer of Unified Communications solutions, a press release stated.
Madhubanti Rudra is a contributing editor for unified communications. To read more of her articles, please visit her columnist page.
Edited by Janice McDuffee