Crossroads Systems, Inc. Announces Completion of $10 Million Equity Financing
AUSTIN, TX–(Marketwire – Oct 22, 2010) – Crossroads Systems, Inc. (PINKSHEETS: CRDS) (the “Company”), a tellurian personality in SaaS solutions for craving clouded cover storage, voiced the execution of a $10.0 million equity financing in a in isolation chain contract to a organisation of institutional investors led by Compass Global Management, Ltd.
The Company solitary 12,500,000 shares of the usual batch at $0.80 per share for sum deduction to the Company of $10.0 million and released warrants to squeeze an one some-more 4,296,875 shares of usual batch (including shares underlying a aver released to the chain agent) with an practice cost of $0.80 per share. The net deduction of the offering, after deducting chain representative fees and estimated financing expenses, have been approaching to be we estimate $9.2 million. MDB Capital Group LLC acted as solitary chain representative for the offering.
“This equity financing outlines an critical rhythm indicate for Crossroads Systems which we hold validates the prophesy to turn a tellurian personality delivering high-value program solutions for craving clouded cover storage,” pronounced Rob Sims, President and CEO of Crossroads Systems. “The clouded cover storage marketplace is flourishing fast with large underserved needs which we hold Crossroads Systems is well-positioned to address. With this capital, Crossroads Systems will be means to accelerate the vital handling and expansion plan.”
In and with this equity financing, Crossroads Systems concluded to turn a stating association and to prepare for the selection of the usual batch and warrants on the OTC circular house or the inventory of the usual batch and warrants on a NASDAQ sell during 2011.
The bonds solitary by the Company in the in isolation placement, and the underlying shares of usual batch issuable on practice of the warrants solitary in the in isolation placement, have not been purebred underneath the Securities Act of 1933, as amended, and might not be charity or solitary absent such registration or an germane grant from the registration requirements. In tie with the offering, the Company entered in to a registration rights agreement with investors which requires which the Company to register the bonds released in the financing.
About Crossroads Systems, Inc.
Crossroads Systems, Inc., headquartered in Austin, Texas, has been a universe personality in storage routing and virtualization given 1996, building some-more than 100 patents postulated and pending. Crossroads Systems exclusive interpretation routing record and storage government solutions have some-more than 125,000 installations in many Fortune 2000 companies. Crossroads Systems right away seeks to move singular program and SaaS solutions to the craving storage zone and for the initial time, broach tiered storage solutions to Cloud Service Providers and in isolation craving clouds. Crossroads Systems’ usual batch trades over-the-counter on Pink Sheets, and the Company posts the monetary avowal reports, press releases and alternative associated support on the OTCIQ Web use of the Pink Sheets Web site. For some-more report per Crossroads Systems, revisit www.crossroads.com.
Safe Harbor Statement
Statements in this press release, together with any projections contained in this release, per the commercial operation which have been not chronological contribution have been “forward-looking statements” which engage risks and uncertainties. Forward-looking statements have been not guarantees of destiny opening and have been innately theme to uncertainties and alternative factors which could means tangible formula to talk about materially from the forward-looking statements and there can be no declaration which any projections enclosed in this recover will come to pass or which the Company will be means to prove the obligations to turn a stating association or to prepare for the selection of the usual batch or the warrants on the OTC circular house or the inventory of the usual batch or warrants on a NASDAQ exchange. The difference “believe,” “expect,” “intend,” “plan,” “project,” “will” and identical phrases as they describe to Crossroads Systems have been dictated to brand such forward-looking statements. These statements simulate the stream views, assumptions, estimates and projections of Crossroads Systems and have been theme to assorted risks and uncertainties which could means tangible formula to talk about materially from expectations. These factors and uncertainties include, but have been not singular to: the singular money and a story of losses; the singular series of intensity customers; the marketplace being characterized by fast more advanced technology; regional, and inhabitant and general mercantile conditions and events and the stroke they might have on us and the customers, such as the stream worldwide recession.
© 2010 Crossroads Systems, Inc. Crossroads and Crossroads Systems have been purebred trademarks of Crossroads Systems, Inc.
