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Smith Micro Announces $4 Million Note and Warrant FinancingALISO VIEJO, Calif., Sept. 6, 2016 /PRNewswire/ -- Smith Micro Software, Inc. (NASDAQ: SMSI) today announced it has entered into agreements to issue $4.0 million of senior subordinated notes and related common stock purchase warrants. The investment is being provided by the Company's two largest stockholders, Unterberg Koller Capital Fund L.P. and William W. and Dieva L. Smith. Mr. Smith is the CEO and founder of Smith Micro Software. The proceeds from the transaction will be used for growth and M&A initiatives, and for general corporate purposes. "I am very excited about the outlook for Smith Micro as we look to finish the year strong," said William W. Smith, Jr., President and CEO of Smith Micro Software. "This debt instrument will help accelerate our growth initiatives, and maximize opportunities from recent and potential M&A activity." Smith Micro acquired Sweden-based Birdstep Technologies in April of this year, followed by Portugal-based iMobileMagic in July. As a result, the Company now has additional technical and sales teams in Europe and Asia, helping to drive more international business opportunities with mobile carrier, cable/MSO, and enterprise companies in those regions. The outstanding principal amount under the senior subordinated notes will accrue interest at a rate of 10% per annum, and will mature on the third anniversary of issuance. The Company is required to make interest payments on a quarterly basis. In addition to the notes, the Company issued to the investors warrants to purchase 1.7 million shares of common stock. The warrants have an exercise price of $2.74 per share and are exercisable for five years from the issuance date. Further details of the investment will be described in a Current Report on Form 8-K to be filed by the Company with the Securities and Exchange Commission. The notes and warrants were not registered under the Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities laws. Accordingly, the securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy such securities, nor shall there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state. About Smith Micro Software, Inc.: Safe Harbor Statement: Smith Micro and the Smith Micro logo are registered trademarks or trademarks of Smith Micro Software, Inc. All other trademarks and product names are the property of their respective companies.
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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/smith-micro-announces-4-million-note-and-warrant-financing-300322425.html SOURCE Smith Micro Software, Inc. |