Telanetix Announces Filing of Registration Statement and Planned Rights Offering
BELLEVUE, Wash.--(BUSINESS WIRE)-- Telanetix, Inc. (OTC BB: TNXI), a leading communications solutions provider offering next generation voice services and solutions to the business market, today announced that it has filed a registration statement with the Securities and Exchange Commission (the “SEC”) with respect to a $3 million rights offering of common stock to its stockholders.
The Company plans to distribute to its common stockholders non-transferable rights to subscribe for and purchase up to an aggregate of 77,881,027 shares of its common stock at a subscription price of $0.0385202935 per share. Under the terms of the senior notes that Telanetix issued on July 2, 2010 to Hale Capital Partners as part of its restructuring, Telanetix agreed to use the gross proceeds of the rights offering to redeem an aggregate of up to $3 million of principal amount of such notes. At the request of the Company, Hale has agreed not to exercise its subscription rights for its common stock holdings in order to allow existing stockholders to subscribe for up to 100% of the offering. Accordingly the shares of Telanetix common stock that are subject to Hale’s subscription rights, an aggregate of 64,982,298 shares, can be subscribed for by Telanetix’s other stockholders of record as of the record date under their over-subscription privilege. To the extent the gross proceeds of the rights offering are less than $3 million, Hale has agreed to exchange the principal amount to be redeemed (up to $3 million) for shares of Telanetix common stock at an exchange price equal to the subscription price of $0.0385202935 per share. The board of directors required the rights offering as a condition to the July 2, 2010 recapitalization to provide stockholders with the opportunity to purchase common stock at the same implied share price paid by Hale in the recapitalization.
The rights offering will be made solely to stockholders of Telanetix who are stockholders as of the record date. The Company anticipates that the record date and the number of subscription rights for each share of common stock held of record will be determined at or about the time that the SEC declares the Company’s registration statement effective. Subscription rights will only be exercisable in whole numbers; the Company will not issue fractional rights and will round all of the subscription rights down to the nearest whole number. Each whole right will entitle the holder to purchase one new share of common stock at the subscription price. Stockholders who fully exercise their basic subscription privilege will also be able to exercise an oversubscription privilege.
Rights offering materials, including a prospectus and other items necessary to exercise the rights, will be mailed to stockholders following the time when the registration statement with respect to the rights offering is declared effective by the SEC. The prospectus will contain important information about the rights offering, including with respect to the exercise period of the rights, which is expected to be for 30 days, and stockholders are urged to read the prospectus carefully when available.
A registration statement relating to these securities has been filed with the SEC but has not yet been declared effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement is declared effective. This press release does not constitute an offer to sell or the solicitation of an offer to buy and there will be no sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. When available, copies of the prospectus relating to these securities may be obtained at www.telanetix.com in the investor relations section of the site.
For more information on Telanetix and its communication solutions, please contact Charles Messman or Todd Kehrli of the MKR Group at 323-468-2300, or visit www.accessline.com.
About Telanetix, Inc.
Telanetix is a leading communications solutions provider offering next generation voice services to the business market. The company's voice offerings, powerful yet cost-effective, are marketed under the "AccessLine" brand, and give business customers a flexible and easy to use alternative to today’s traditional phone service. Telanetix offers flexible calling solutions, a simpler installation experience, and a greater range of support options than traditional telecom providers. Additional information may be found at the Telanetix corporate website, www.telanetix.com.
CONTACT:
Investor Relations:
MKR Group
Charles Messman or Todd Kehrli
323-468-2300
tnxi@mkr-group.com
KEYWORDS: United States North America Washington
INDUSTRY KEYWORDS: Technology Telecommunications VoIP
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