DecisionPoint Systems Announces Completion Of $3.8 Million Convertible Preferred Stock Financing
IRVINE, Calif., Nov. 15, 2013 /PRNewswire/ -- DecisionPoint™ Systems, Inc. (OTCQB: DPSI), a leading provider and integrator of Enterprise Mobility, Wireless Applications and RFID solutions, announced that it has raised $3.83 million in gross proceeds from institutional and accredited investors through a private placement of 383,000 shares of 10 percent Series E convertible preferred stock, with a stated value of $10.00 per share. Each share of preferred stock may be converted into common stock at any time at the option of the holder. The current conversion price is $0.50 per common share, which means that each share of preferred stock may be converted into 20 shares of common stock. The conversion price is subject to adjustment in the event that additional shares of capital stock are issued at a price per share of less than $0.50 (subject to certain carve-outs and other adjustments). After deducting the placement agent's commission, the company received net proceeds of approximately $3.5 million.
The proceeds will be used for general corporate purposes.
As part of this transaction, Mr. Robert Schroeder, Vice President Investment Banking of Taglich Brothers, will join the Company's Board of Directors.
Taglich Brothers, Inc. served as the exclusive placement agent. For more details, please see the current report on Form 8-K to be filed by DecisionPoint Systems on or about November 18, 2013. The law firm of Sichenzia Ross Friedman Ference LLP (www.srff.com) represented DecisionPoint in the transaction.
"This financing will bolster our balance sheet and broaden our shareholder base to meet minimum standards for listing our common stock on a nationally recognized exchange, one of our strategic goals," said Nicholas Toms, Chief Executive Officer of DecisionPoint.
The securities sold by DecisionPoint in the private placement were not registered under the Securities Act of 1933, as amended (the "Securities Act"), and were sold in reliance upon exemptions from the registration requirements of the Securities Act pursuant to Regulation D promulgated under the Securities Act. Therefore, such securities may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and any applicable state securities laws. This press release does not constitute an offer to sell any securities or a solicitation of an offer to purchase any securities
About Taglich Brothers
Founded in 1991, Taglich Brothers, Inc. is a full service brokerage firm specializing in the microcap segment of the market for publicly traded securities. The firm has selected this unique niche for two reasons. First and foremost, the small cap market has historically outperformed the large cap market over the past 75 years. Second, this area of the market is virtually ignored by the larger institutions and other Wall Street firms because they cannot invest enough capital in each situation to justify the expense of investigating these companies.
About DecisionPoint™ Systems, Inc.
DecisionPoint Systems, Inc. empowers the mobile workforce to enhance customer satisfaction and accelerate business growth. They accomplish this by making enterprise software applications accessible to the front-line mobile worker anytime, anywhere. DecisionPoint combines its industry leading software products, application development capabilities, deployment and support services with the latest wireless, and mobile technologies.
For more information on DecisionPoint Systems visit www.decisionpt.com
Forward Looking Statements
Under The Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectation.
Nicholas R. Toms
Chief Executive Officer
Taglich Brothers, Inc.
Len Hall (media)
SOURCE DecisionPoint Systems, Inc.