Seattle, WA (PRWEB) August 22, 2012
Lenco Mobile, Inc. announced today it has secured an aggregate of $4 million in a debt financing, pursuant to which investors purchased from Lenco, promissory notes and warrants to purchase shares of Lenco's common stock. Lenco intends to use the proceeds to repay outstanding indebtedness, support the company’s ongoing sales and marketing initiatives, continued investments in technology and for other general corporate purposes.
“We are pleased with the progress we’ve made since the merger of Lenco and iLoop in late December 2011. We’ve spent the first half of the year tightly focused on integrating the global teams and technology and establishing a solid foundation for future growth,“ said Matt Harris, CEO of Lenco. “We believe that the financing is an important piece of that foundation.”
The promissory notes issued in the debt financing are secured by a first priority security interest in substantially all of Lenco's assets and properties, accrue interest at a rate of 12% per annum and if not repaid earlier, will mature in 2014. The warrants issued in the debt financing provide investors with the right to purchase up to an aggregate of 11,919,000 shares of Lenco's common stock (at an exercise price of $0.10 per share) at any time during the five-year period following the date of issuance, and are subject to certain antidilution adjustments. Additional information regarding the debt financing, including the terms of the promissory notes and warrants, is set forth in Lenco's Forms 8-K that were filed with the Securities and Exchange Commission on August 3, 2012 and August 22, 2012 and which should be reviewed carefully in conjunction with this press release.
Lenco also announced the appointment of Bob Chiumento as General Manager of the Americas. Bob comes to Lenco with a long history of success as a sales and marketing executive, including senior leadership positions at General Electric.
“Lenco has impressive mobile technology capabilities with the potential to reach billions of people worldwide on a personalized, targeted basis,” said Chiumento. “I’m excited to join an amazing team of talented people that are driven to deliver mobile solutions that exceed customers’ expectations.”
“We’re thrilled to have an executive with Bob’s stature and track record as part of our core team,” said Harris.
ABOUT LENCO MOBILE (OTCPK: LNCM)
In December 2011, iLoop Mobile and Lenco Mobile merged to form a global mobile technology and services firm. This powerful union gives the company the expertise and technology to support customers in developing and launching large scale mobile initiatives. Lenco offers unique high performance MMS capabilities along with SMS, Mobile Web, Mobile Social Integration, International Services, Carrier Products, and a broad range of vertical specific solutions. The combination of expertise and leading-edge mobile technology has the potential to create a global leader with unmatched scale, reach, and capabilities. In June 2012, the combined companies began the process of rebranding under a unified name, Archer. For more information about Lenco Mobile please visit helloarcher.com.
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to competition, management of growth, new products, services and technologies, potential fluctuations in operating results, international expansion, outcomes of legal proceedings and claims, seasonality, commercial agreements, acquisitions and strategic transactions, foreign exchange rates, system interruption, government regulation and taxation, payments and fraud. More information about factors that potentially could affect Lenco’s financial results is included in Lenco’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings.