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Inventergy Announces $2.4 Million Debt FinancingCUPERTINO, Calif., Jan. 09, 2018 (GLOBE NEWSWIRE) -- Inventergy Global, Inc. (OTCPink:INVT), an intellectual property licensing and innovation company (“Inventergy” or the “Company”), announced that on December 29, 2017 the Company entered into a Securities Purchase Agreement (the “Agreement”) with an investment fund (the “Investor”). Pursuant to the Agreement, the Company issued $2.4 million in senior secured convertible (convertible only on an event of default) redeemable debentures (the “Debentures”) to the Investor. The Agreement also contemplates the sale of up to an additional $1.6 million principal amount of Debentures by the Company to the Investor, based upon the performance of the Company. The unpaid principal amount bears interest at 17% per annum, with interest only payments for six months. Monthly payments of principal begin in July 2018, with such payments increasing in later months such that all interest and principal is paid 24 months from closing, which occurred on December 29, 2017. An additional amount of $3.5 million (plus 8% interest per annum) is due to the Investor in 36 months. For the first 6 months payments will be interest only, and the remaining 30 months will include principle payments. The Company also agreed to pay a profit sharing fee of $3.5 million payable from future revenues to be received by the Company from the special purpose entity, INVT SPE LLC. This total amount is fully due and payable in 42 months. Additional information regarding the Agreement is contained in Inventergy’s Form 8-K filed January 5, 2018 with the SEC. Joe Beyers, Inventergy CEO, said, The completion of this financing is an important milestone for the Company. It enables to repay its existing obligations, and provides general working capital for future operations. In particular, this financing allows management to increase its focus on future revenue creation.” The Company focuses on two business opportunities: 2. Inventergy has rights to INVT SPE LLC, established in April 2017, which is a special purpose entity with 740 telecommunications patents previously owned by Inventergy. Inventergy receives a portion of the net revenues of the INVT SPE LLC by the license or sale of these patents. On August 2017, the Company announced the results of an independent third party valuation of Inventergy’s ownership interest of INVT SPE LLC. The valuation determined that Inventergy’s interest had a net present value of approximately $43 million ($67 million total). About Inventergy Global, Inc. Cautionary Statement Regarding Forward-Looking Statements Contact: |