Ribbon Communications Inc. has executed a securities purchase agreement to raise gross proceeds of approximately US$52 million in a private placement financing of common stock. Ribbon says it intends to use the net proceeds from the private placement to fund general corporate purposes, including capital expenditures, working capital and debt repayment.
Ribbon will issue approximately 17,050,000 shares of common stock in the private placement at a price of US$3.05. The private placement is expected to close subject to customary closing conditions.
Ribbon’s CFO Mick Lopez said, “We are very appreciative of the incremental investment being made by our existing and new shareholders. The new capital will provide the company additional financial flexibility as we execute on our strategy to invest in product development and drive near-term profitable growth.”
The private placement investors were led by Neuberger Berman client funds, and included Ribbon’s two largest shareholders, JPMorgan Chase & Co. and Swarth Investments Ltd., and Heights Capital Management, Inc., among other investors.
For more information, visit https://ribboncommunications.com