SCOTTS VALLEY, Calif., Jan. 27 /PRNewswire-FirstCall/ -- VirnetX Holding
Corporation (Amex: VHC), a leader in secure real-time communications and
collaborations technology, has priced its underwritten public offering of
2,200,000 shares of common stock and warrants to purchase 3,300,000 shares of
common stock. The purchase price for each share of common stock and associated
warrants is $1.50.
For each share purchased at the closing of the offering, an investor will
receive a warrant to purchase 0.5 shares of VHC common stock at $2.00 per
share, a warrant to purchase 0.5 shares of VHC common stock at $3.00 per share
and a warrant to purchase 0.5 shares of VHC common stock at $4.00 per share.
All warrants will be exercisable on or after the applicable closing date of
the offering through and including the 18-month anniversary of the closing
date. All warrants will also include a call feature that gives VHC the right
to require the holder of the warrant to exercise the warrant when VHC's
average closing stock price over five consecutive trading days is equal to or
exceeds two times the applicable warrant's purchase price, failing which the
warrant will expire.
VHC's common stock is currently listed on the NYSE Alternext US Exchange
under the symbol "VHC." The closing has been scheduled for January 30, 2009.
After fees and offering expenses, VHC will receive net proceeds of
approximately $2.3 million. The company intends to use the proceeds to fund
product development, pursue its litigation strategy and for general working
Gilford Securities Incorporated acted as underwriter in this offering. VHC
has granted the underwriter a 45-day option to purchase at the public offering
price up to 330,000 additional shares and warrants to purchase up to an
additional 165,000 shares at an exercise price of $2.00 per share, an
additional 165,000 shares at an exercise price of $3.00 per share and an
additional 165,000 shares at an exercise price of $4.00 per share, to cover
A registration statement on Form S-1 relating to these securities has been
declared effective by the SEC as of 4:30 p.m. on January 26, 2009. This press
release shall not constitute an offer to sell or a solicitation of an offer to
buy, nor shall there be any sale of these securities in any state or
jurisdiction in which such an offer, solicitation or sale would be unlawful
prior to the registration or qualification under the securities laws of any
such state or jurisdiction.
This press release may contain certain forward-looking statements that
reflect the current views and/or expectations of VHC with respect to future
events and the use of proceeds from the offering. Such statements are subject
to a number of risks, uncertainties and assumptions. Actual results and events
may vary significantly.
SOURCE VirnetX Holding Corporation
CONTACT: Rudy Barrio (Investors), Allen & Caron, +1-212-691-8087,
email@example.com; Sameer Mathur, VirnetX Holding Corporation,