Investment capital to accelerate opportunities in 5G and IoT Cloud,
enhance liquidity and deleverage the balance sheet
SAN DIEGO--(BUSINESS WIRE)--Aug. 6, 2018--
Inseego
Corp. (Nasdaq: INSG), an industry leader in solutions for
intelligent mobile enterprises, announced today that it completed a
$19.7 million private placement on August 6, 2018. Investors are an
affiliate of Tavistock Group, an international private investment firm,
and existing shareholder, North Sound Partners.
Board Chair Transition
Concurrent with this transaction, CEO Dan Mondor has been elected
Chairman of the Board of Directors, replacing Phil Falcone who has
stepped down. In addition, Jim Avery of Tavistock Group and Brian Miller
of North Sound Partners have joined Inseego’s Board of Directors.
“I’m very pleased that Dan has been elected Chairman,” said Phil
Falcone. “He has significant experience as a leader in the tech industry
and transforming businesses. Under Dan’s leadership, Inseego has made
tremendous progress positioning the Company solidly for the sizable
opportunities in 5G and IoT Cloud. He has built a strong foundation for
profitable growth, and I remain a long-term supporter and investor in
the Company.”
“This is an exciting time for Inseego. Tavistock and North Sound are
both highly regarded investment firms and this partnership enables us to
accelerate our growth strategy, and adds global relationships and
financial flexibility,” said Dan Mondor, Chairman and CEO of Inseego.
“My thanks to Phil for his leadership during the early stages of
Inseego’s turnaround. I welcome Jim and Brian to the Board. Both bring
unique financial and technology industry experience and will provide
valuable insights as we continue to seize new opportunities.”
New Directors
Jim Avery joined Tavistock Group in 2014 and is currently a Senior
Managing Director. Jim brings many years of experience as a senior
telecom and technology banker at both Morgan Stanley and boutique firm,
GCA Savvian.
“We are pleased to partner with Inseego and help capitalize on the
global demand for their cutting-edge solutions and advance the Company’s
pace of product innovation,” said Jim Avery.
Brian Miller is Chief Investment Officer of North Sound Partners and
General Partner of North Sound Ventures, which invests directly in early
stage growth opportunities and helps companies create shareholder value.
Prior to founding the North Sound group of companies, Brian spent over
20 years at Elliott Management, a New York-based hedge fund where he was
an equity partner, Chief Trading Officer, and served on the management
committee.
“Inseego is uniquely positioned for growth in attractive 5G, Cloud
Telematics and IoT markets,” said Brian Miller. “As an existing
investor, I have always recognized the technological strengths of
Inseego. With the new management team led by Dan, I believe Inseego is
poised to capture a substantial share of these markets going forward.”
Transaction Summary
Upon the closing of this transaction, the Company issued to the
Investors a total of 12,062,000 units, at a purchase price of $1.63 per
unit, with each unit consisting of a share of the Company’s common stock
and a warrant to purchase an additional .35 of a share of the Company’s
common stock at an exercise price of $2.52 per share. The terms of the
transaction will be described in the SEC filing to be filed by the
Company related to the transaction. The net proceeds from the
transaction will be used to accelerate strategic investment,
particularly opportunities related to the growing 5G and cloud IoT
markets, and to strengthen the Company’s balance sheet.
Inseego will provide additional information during the Inseego Q2 2018
Quarterly Results call, Tuesday, August 7 at 5:00PM ET. For parties
in the United States, call toll free 1-844-881-0135 to access the
conference call. International parties can access the call at
1-412-317-6727.
About Inseego Corp.
Inseego Corp. (Nasdaq: INSG) enables high performance mobile
applications for large enterprise verticals, service providers and
small-medium businesses around the globe. Our product portfolio consists
of Enterprise SaaS solutions and IoT & Mobile solutions, which together
form the backbone of compelling, intelligent, reliable and secure IoT
services with deep business intelligence. Inseego powers mission
critical applications with a “zero unscheduled downtime” mandate, such
as asset tracking, fleet management, industrial IoT, SD WAN failover
management and mobile broadband services. Our solutions are powered by
our key innovations in purpose built SaaS cloud platforms, IoT and
mobile technologies including the newly emerging 5G technology. Inseego
is headquartered in San Diego, California with offices worldwide. www.inseego.com
About Tavistock Group
Tavistock Group is an international private investment organization
founded by Joe Lewis. With investments in more than 200 companies across
10 countries, Tavistock Group’s investment portfolio includes: life
sciences, sports teams and sporting events, manufacturing and
distribution, oil, gas and energy, financial services, restaurants,
commercial properties, private luxury residential properties, resort
properties and master-planned real estate developments. For more
information, visit www.tavistock.com.
Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements, which are made
pursuant to the safe harbor provisions of the United States Private
Securities Litigation Reform Act of 1995, as amended to date, including,
without limitation, statements regarding the Company’s anticipated use
of the proceeds of its financing, the success of the Company’s planned
expansion of product offerings, the Company’s ability to achieve growth
in the 5G, Cloud Telematics and IoT markets and other statements that
are not purely statements of historical fact. These forward-looking
statements involve risks and uncertainties. A number of important
factors could cause actual results to differ materially from those
reflected in the forward-looking statements contained herein. These
factors include risks relating to technological changes, new product
introductions, continued acceptance of Inseego's products and dependence
on intellectual property rights. These factors, as well as other factors
that could cause actual results to differ materially, are discussed in
more detail in Inseego's filings with the United States Securities and
Exchange Commission (available at www.sec.gov)
and other regulatory agencies.
©2018. Inseego Corp. All rights reserved. The Inseego name and logo are
trademarks of Inseego Corp. Other Company, product or service names
mentioned herein are the trademarks of their respective owners.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180806005645/en/
Source: Inseego Corp.
Inseego Corp.
Media contact:
Anette Gaven, +1 (619) 993-3058
Anette.Gaven@inseego.com
Or
Investor
Relations contact:
MKR Group
Joo-Hun Kim, +1 (212) 868-6760
joohunkim@mkrir.com
http://investor.inseego.com/
