article by : Julien Weston of Wired VC
Crossroads Systems, Inc., an Austin, Texas based company providing SaaS solutions for enterprise cloud storage, has announced the completion of a $10m equity financing in a private placement transaction to a group of institutional investors led by Compass Global Management, Ltd.
The Company sold 12,500,000 shares of its common stock at $0.80 per share for gross proceeds to the Company of $10.0 million and issued warrants to purchase an additional 4,296,875 shares of common stock (including shares underlying a warrant issued to the placement agent) with an exercise price of $0.80 per share. The net proceeds of the offering, after deducting placement agent fees and estimated financing expenses, are expected to be approximately $9.2 million. MDB Capital Group LLC acted as sole placement agent for the offering.
“This equity financing marks an important inflection point for Crossroads Systems, which we believe validates our vision to become a global leader delivering high-value software solutions for enterprise cloud storage” said Rob Sims, President and CEO of Crossroads Systems. “The cloud storage market is growing rapidly with large under-served needs that we believe Crossroads Systems is well-positioned to address. With this capital, Crossroads Systems will be able to accelerate its strategic operating and growth plan.”
In conjunction with this equity financing, Crossroads Systems agreed to become a reporting company and to arrange for the quotation of its common stock and warrants on the OTC bulletin board or the listing of its common stock and warrants on a NASDAQ exchange during 2011.
Crossroads Systems are an acknowledged leader in storage routing and virtualization, developing more than 100 patents granted and pending since 1996. The company’s proprietary data routing technology and storage management solutions have more than 125,000 installations in mostly Fortune 2000 companies. Crossroads Systems now seeks to bring unique software and SaaS solutions to the enterprise storage sector and for the first time, to deliver tiered storage solutions to Cloud Service Providers and private enterprise clouds.
for original article click here
