Vuzix, a supplier of video eyewear and smart glasses products designed for the consumer, commercial and entertainment markets, today announced the exercise of a majority of the company’s outstanding warrants issued in conjunction to its August 2013 public offering.
The company reports that holders of its common stock purchase warrants have elected to exercise into common shares – this includes outstanding warrants held by executive management.
Since the beginning of 2015, Vuzix has received requests to exercise 4,605,892 warrants associated with its 2013 stock offering which were exercisable into common stock at $2.25 per share. To-date, 469,500 of these have been exercised for cash for net proceeds to the company totaling approximately $1.0 million. The 4,158,092 balance was exercised on a cashless basis resulting in the issuance of 3,534,972 common shares. Of these cashless exercises, a total of 3,822,442 were exercised on February 25, 2015. The company did not offer the holders of warrants any inducement to exercise. There are currently now only 125,100 warrants outstanding from the August 2013 offering and the total warrants outstanding are now only 597,643.
Vuzix also announced that it has received $337,500 in convertible note conversions during this time period. Total convertible notes outstanding today, excluding accrued interest is now $2.0 million, which is convertible into 905,556 shares.
As of February 26, 2015, following the exercise of these warrants and note conversions, Vuzix now has 15,800,489 commons shares. The company’s outstanding preferred shares are convertible into an additional 4,962,000 common shares.
“The exercise of warrants, receipt of cash and reduction of debt all help to further bolster Vuzix’ balance sheet and improve our capital structure,” stated Vuzix founder and CEO Paul Travers. “We are pleased to see this vote of confidence from our investors following our recent investment from Intel and the company’s listing onto NASDAQ. We strongly believe in the value of share ownership in the company, which is why CFO, Grant Russell and I have also decided to exercise all our warrants into common shares with our other warrant holders. This is yet another step in strengthening our capital structure and bolstering the balance sheet of the company.”
Improvements in Vuzix’ balance sheet will be reflected in the company’s Form 10-Q filing for the period ending March 31, 2015.
For more information, visit www.vuzix.com
