SARASOTA, Fla., May 7, 2013 /PRNewswire/ -- Axiologix, Inc. (www.axiologix.net) (Pinksheets: AXLX), an International Technology and Services Organization focused on delivering Cloud-based Products and Services, announced today that it has entered into a $7.5 million Preferred Equity Investment with Ironridge Technology Co., a division of Ironridge Global.
The Company plans to use the proceeds from this structured investment to fund operational growth, such as the joint venture announced on May 2nd, make additional strategic and immediately accretive acquisitions and to pay down remaining debt over time.
Under the terms of the agreement, Axiologix will issue Ironridge restricted Series C Convertible Preferred Shares as funds are drawn down monthly. These are convertible into restricted common stock at a fixed price of $0.0008 per share. Ironridge will be unable to convert the preferred shares into common stock for at least 12 months after each issuance. The Preferred shares will earn dividends of 8% per year, subject to common stock share price performance during the period that will either decrease or increase the dividends payable. The first Closing occurred on May 2, 2013 in which the Company received $50,000. Each subsequent Closing will take place on the first day of each calendar month thereafter or sooner, at the Company's option if certain conditions set forth in the Stock Purchase Agreement are met. Full details of the transaction have been posted at http://www.otcmarkets.com/stock/AXLX/filings
John C. Kirkland, Managing Director of Ironridge Global Partners said, "We are very pleased to make this next commitment to Axiologix following our first $800,000 investment earlier this year. According to an April 2013 report from Infonetics Research, the global VoIP services market totaled $63 billion in 2012, and demand for business VOIP services, enterprise cloud-based services, hosted VoIP and UC services, SIP trunks, and managed IP PBX services all grew in 2012 from 2011. Demand for cloud telephony and unified communications services alongside SIP trunking is increasing as more multi-site businesses seek out hybrid solutions. Vincent and his Axiologix team have executed well against their stated plans and fully performed as promised."
Vincent Browne, Chairman and CEO of Axiologix, Inc., commented. "This is another truly significant milestone for our Company and we would like to thank Ironridge for showing such confidence in what we are working towards. With this equity funding now in place from such a respected institutional investor we now have the necessary foundations to underpin our ambitious plans. This is a clear message to all of our partners, both current and future that we have the necessary firepower to complete on what we set out to do. This confidence will allow us to negotiate better terms with prospective lenders for the pending acquisitions and allow us to avoid short-term funding options that typically require issuing stock at deep discounts as has been the case in the past. It will generate confidence for our acquisition targets that not only can we pay for them, but we can also invest in making them grow faster once we have. We have been working toward this situation for some time and I am personally delighted to have reached this milestone at this exciting time for our Company."
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About Axiologix, Inc.
Axiologix Inc. is an International Technology and Services Organization focused on delivering Cloud-based Products and Services to small and medium sized businesses primarily in the United States and to operators globally. Axiologix is headquartered in Florida, with international operations in Dublin, Ireland. Additional information may be found at www.axiologix.net
This press release contains forward-looking statements. Words such as "expects", "intends'', "believes'', and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, the ability to secure additional sources of finance, the ability to reduce operating expenses, and other factors described in the Company's filings with the OTC Markets Group. The actual results that the Company achieves may differ materially from any forward-looking statement due to such risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
SOURCE Axiologix, Inc.