Single Touch Systems Inc., Announces Completion of $3,000,000 Financing
JERSEY CITY, N.J--(BUSINESS WIRE)-- Single Touch Systems Inc. (OTC BB: SITO), a technology based mobile media solutions provider that enables businesses, advertisers and brands to easily connect with customers through its patented technologies, announced today that it has completed a $3,000,000 private placement.
The financing was completed on October 5, 2012 with two-year, 10% convertible notes, netting the Company approximately $2.8 million after expenses. Interest on the notes is payable semi-annually. The principal balance of the note is set at a conversion price of $0.50 per share, which is above the closing market price of $0.28 on October 4, 2012. Purchasers of the notes will also receive one warrant for every conversion share underlying the notes, exercisable at $0.25 within three-years of the purchase.
Single Touch intends to use the net proceeds from the offering primarily to capitalize on organic growth opportunities, with a portion being used to support activities to protect its Intellectual Property Portfolio. Taglich Brothers, Inc. served as the exclusive placement agent and the firm's principals, Michael Taglich and Robert Taglich, both personally invested in the transaction. The balance of the funds was raised from accredited investors.
"With significant organic growth opportunities in front of us, this financing will help accelerate investments into both our operating business and IP portfolio as well as allow us to further advance our growth strategy," stated Single Touch President and CEO, James Orsini. "Raising these funds at favorable terms highlights the value that our operating business and our IP portfolio represent."
Michael Taglich, Co-Founder, President and Chairman of Taglich Brothers, commented, "We are excited about our investment in Single Touch. We are impressed with the management team, see upside in the IP platform, and like the growth they have exhibited, which we expect will continue."
About Single Touch Systems, Inc.
Single Touch Systems, Inc. is a technology based mobile solutions provider serving businesses, advertisers and brands. Through patented technologies and a modular, adaptable platform, Single Touch's multi-channel messaging gateway enables marketers to reach consumers on all types of connected devices, with information that engages interest, drives transactions and strengthens relationships and loyalty. For more information about Single Touch Systems, Inc. visit: www.singletouch.net
About Taglich Brothers
Founded in 1991, Taglich Brothers, Inc. is a full service brokerage firm specializing in the microcap segment of the market for publicly traded securities. The firm has selected this unique niche for two reasons. First and foremost, the small cap market has historically outperformed the large cap market over the past 75 years. Second, this area of the market is virtually ignored by the larger institutions and other Wall Street firms because they cannot invest enough capital in each situation to justify the expense of investigating these companies.
This news release may contain forward-looking statements that involve risks and uncertainties and reflect Single Touch's judgment as of the date of this release. These statements may include those regarding strategy, growth and future operations. Actual events or results may differ from Single Touch's expectations. The risks and uncertainties include reliance on brand owners and wireless carriers, the possible need for additional capital, as well as other risks identified in Single Touch's most recent Form 10-K filing with the SEC. Single Touch disclaims any intent or obligation to update these forward-looking statements beyond the date of this press release, except as may be required by law.
KEYWORDS: United States North America New Jersey
The article Single Touch Systems Inc., Announces Completion of $3,000,000 Financing originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.