NEW YORK, Aug. 9, 2016 /PRNewswire/ -- Spherix Incorporated (NASDAQ: SPEX) –a company committed to the fostering of technology and the monetization of intellectual property, today announced that it has entered into a non-binding letter of intent ("LOI") to invest in DatChat Inc. – a pioneer in the secure (privacy) messaging industry – in exchange for an equity security interest in DatChat. DatChat's patent-pending encryption technology allows users to secure their messages sent between mobile devices. Earlier this year, DatChat announced that its technology offers an unprecedented level of privacy control for both individual and group messages. According to DatChat, its app is the first privacy messaging app that provides the option to dictate how long sent messages are accessible on the recipient's phone and is the first to offer an option that will erase both sides of a conversation on both the sender and recipient's devices, even after the information is transmitted to another user. Currently, the DatChat app is available in the iTunes® store.
Spherix CEO Anthony Hayes commented: "As noted in a recent Time Magazine article, Kleiner Perkins Caufield & Byers partner Mary Meeker acknowledged the messaging app trend in her widely read annual report on the state of the Internet, released earlier this year. According to the article, Meeker noted that messaging apps have the potential to become a larger part of how we access information and services on the Internet. Messaging apps, she predicts, could take over the function of the home screen as a portal to various apps. This contemplated investment in DatChat continues our focus to diversify and build value for our holders by an investment in this exciting field. We believe the technology of DatChat is unique and our expertise in the technology patent space may allow us to help DatChat realize its value."
There is no assurance that the proposal will result in a binding offer being made to DatChat or that the transaction contemplated by the LOI, or any other transaction between the parties, will be completed. The transaction is subject to customary due diligence. Consummation of the transaction is necessarily further subject to entering into a definitive agreement between the parties containing specific signing and closing terms and conditions yet to be negotiated.
This press release shall not constitute an offer to sell or the solicitation of an offer to acquire any securities, nor shall there be any sale of any securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
Spherix is committed to advancing innovation by active participation in all areas of the patent market. Spherix draws on portfolios of pioneering technology patents to partner with and support product innovation. Spherix has acquired over 100 patents from Rockstar Consortium Inc., and several hundred patents issued to Harris Corporation, covering a variety of methods and components involved in switching, routing, networking, optical and telecommunication sectors.
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"), not limited to Risk Factors relating to its patent business contained therein. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/spherix-enters-into-non-binding-letter-of-intent-with-privacy-messaging-pioneer-datchat-300310920.html
SOURCE Spherix Incorporated