Mobivity Secures $11 Million from Private Financing
Mobivity Holdings Corp. (OTCQB: MFON), a chandler-based, award-winning provider of proprietary mobile marketing technologies and solutions with over 11,000 local advertisers currently using their technology and the inventor of C4, a unique, enterprise-grade platform empowering brands to engage mobile consumers across multiple channels, announced today the completion of $11,013,208 million in private financing.
The money breaks down like this: “…the Company’s initial sale of common shares in exchange for $5,795,000 of new capital and the conversion of $5,122,805 of principal and accrued but unpaid interest outstanding under previously issued 10 percent Senior Secured Bridge Notes (“Bridge Notes”), at an offering price of $0.20 per share. Emerging Growth Equities, Ltd. acted as the exclusive placement agent for the financing. The financing proceeds will be used to pay off the remaining $1,400,000 consideration related to the previously announced Front Door Insights acquisition and for future working capital needs,” according to the Mobivity Holdings Corp. press release.
“The cash portion of financing represents the initial closing of the proposed sale of up to $7.5 million of common shares by the Company at $0.20 per share. The Company expects to conduct additional closings for up to an additional $1,705,000 over the next few days. The Company is also pursuing the conversion of the remaining $217,218 of principal and accrued interest under the Bridge Notes into common shares at the rate of $0.20 per share.”
Chairman and CEO, Dennis Becker explains, “This financing marks a major milestone in the growth of our Company. The amount of new capital, coupled with the conversion of 96% of the outstanding Bridge Notes, provides Mobivity with a relatively debt free balance sheet going forward and over $4 million in cash.”
With respect to Mobivity’s growth and Arizona’s tech ecosystem, Becker states, “We’ve grown the Company tremendously since relocating headquarters from San Diego to Chandler more than a year ago. After five acquisitions and growth from a few hundred to more than 11,000 end users we feel we’ve proven the market opportunity is ready for scale. This new capital injection is a huge vote of support for our plan and we’re frequently reminded that ramping our growth out of Chandler was a smart move that has now been reinforced by meaningful investor support. This is a transformative time for Mobivity and we’re excited to be a big part of reinventing local marketing through mobile technology.”
Mobivity clients include CNN, Disney, NFL, Sony Pictures, AT&T, USTA, Chick-fil-A, the Golf Channel, NBC Universal, Sonic Drive In, Jamba Juice, and numerous professional sports teams. The company plans to also use the money to recruit and train a national sales force and expand market share.
To learn more about Mobivity visit www.mobivity.com