VoIP-based services provider 8x8, Inc. announced today that it agreed to sell 6,897,618 shares of its common stock to institutional investors at a purchase price of $2.10 per share for aggregate proceeds of approximately $14.5 million before placement fees and other offering expenses.
The multimillion dollar transaction is expected to close and fund on or about next Tuesday, March 8. It has been estimated that the net proceeds of approximately $13.5 million from the offering will be used to provide additional working capital and for general corporate purposes.
Securities firm A.G. Edwards and Griffin acted as placement agents for this unprecedented offering. The company’s shares in this offering are currently being issued under a shelf registration statement previously filed with and declared effective by the Securities and Exchange Commission. A prospectus increment related to the offering will be filed with the Securities and Exchange Commission.
The company offers Internet telephony products and services for residential and business users. Today’s announcement follows the company’s recent partnership with 5Linx, a telecom sales company, to jointly market the Packet8 broadband phone services under the Globalinx name. Headquartered in, 5Linx
“5Linx is very pleased to join forces with 8x8 to add Packet8-powered voice over IP phone services to our telecommunications mix,” said Jeb Tyler VP and co-founder of Rochester, NY-based 5Linx about the announcement. “Our reps are eager and motivated to introduce their customers to the tremendous savings and benefits available to them through the Globalinx broadband phone service offering,” he concluded.
|Johanne Torres is contributing editor for TMCnet.com and Internet Telephony magazine. Previously, she was
assistant editor for EContent magazine in Connecticut. She
can be reached by e-mail at email@example.com.