Tucson-based Audio Internet co. raises $3.25M to expand sales & marketing efforts
Tucson-based, AudioEye, creator of the Audio Internet patented audio browsing and automated publishing technology platform, announced that it has closed on the private placement of 10,835,002 Units, gross proceeds of approximately $3.25 million.
Each Unit was priced at $0.30 and consisted of one share of common stock and a warrant to purchase one share of common stock at an exercise price of $0.40 per share. The shares were sold to certain institutional and accredited investors. AudioEye plans to use the net proceeds of this financing to continue to expand its sales and marketing efforts and for other working capital purposes.
Earlier this year AudioEye went public. The company split from its parent company CMG Holdings Group last August after being acquired just two years before and is now trading on the OTCQB, an over-the-counter stock market, under “AEYE”.
AudioEye was founded in 2003 and has developed a platform to provide a fully audio Internet when connected to voice recognition and artificial intelligence engines. The technology allows navigation and transactions through voice recognition.
The software gives any publisher the ability to provide Internet users with fully audio, narrated, hands- and vision-free versions of its website, something many companies and government agencies require.
AudioEye has partnered with government sales specialists giving them a team of over 50 salespeople with ties to government agencies and has added a team of developers with experience in developing enterprise-level platforms.
What spawned this idea is that after the introduction of The Americans with Disabilities Act and the 21st Century Communications and Video Accessibility Act (CVAA), AudioEye saw the need for an audio Internet. Executives explained to us that they see the government sector as an important vertical with a lot of potential growth.
“This is our first institutional round of capital financing at AudioEye and takes our total 2013 capital raised to four million dollars,” Nathaniel T. Bradley, AudioEye’s CEO told AZTB. “We’re turning our attention to the close of the 2013 sales year and executing our strategic plan into 2014. We’re focused on driving revenue through the efficient operation of the AudioEye business which is uniquely scalable, technology driven and customer centric.”
CEO Nathaniel T. Bradley’s quote was added after the original post, thank you.